HECS debt set to skyrocket
Greens slam 'alarming trajectory' as debts forecast to rise by nearly 50% this year
The average HELP debt for former students will rise by $1700 this year as costs continue to spiral, new figures reveal. The measure will also be backdated to 2023, meaning the 7.1 per cent increase will be replaced with a much higher rate.
The reform would also apply to this year's indexation rate of an estimated 4.8 per cent – the second highest on record.
HECS-HELP debt will rise by 3.9 per cent on June 1, according to figures released by the independent Parliamentary Budget Office. This will take the average HELP debt to $29,714, up from $28,145. The rise is being driven by a combination of factors, including the increasing cost of university education and the government's decision to freeze the HELP repayment threshold since 2018.
The Greens' education spokesperson, Senator Mehreen Faruqi, said the figures were "alarming" and showed the government was "failing to address the unsustainable trajectory" of HECS debts. "The government needs to act now to ensure that HECS debts do not become a barrier to higher education for future generations," she said.
The government has been under increasing pressure to address the rising cost of HECS debts. In May, the Senate passed a motion calling on the government to investigate options to reduce the cost of university education and to increase the HELP repayment threshold.
The government has said it is "committed to ensuring that higher education is accessible and affordable for all Australians". However, it has not yet announced any specific measures to address the rising cost of HECS debts.
The rising cost of HECS debts is a major concern for many former students. According to a recent survey by the National Union of Students, 60 per cent of former students are worried about their ability to repay their HECS debts.
The survey also found that 40 per cent of former students have delayed or foregone further study due to the cost of HECS debts. The rising cost of HECS debts is also putting off school-students are choosing university.
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