The new research from The Australia Institute reveals the HECS-HELP system is of little or no help for students and graduates.
HECS was designed for students to make a modest, fair contribution to their education.
Now, it leaves many with a mountain of debt - and stress – once they complete their studies.
The Albanese government's proposed changes to the scheme will do little to significantly improve the lives of impoverished current students or recent graduates paying off huge loans.
The report starkly exposes this government's priorities. Students contribute more in HECS-HELP payments than foreign-owned gas companies, which extract and sell Australian resources at a massive profit, contribute via the Petroleum Resource Rent Tax.
Key findings:
- HECs began in 1989 as a flat fee of $1800 for all students. Now, three years of study for popular degrees in social sciences or humanities cost almost $50,000.
- The average HECS-HELP debt for those in their 20s has gone from $12,600 in 2006 to $31,500 now.
- Based on debts which have been repaid, the average time it takes for a student to pay off their HECS-HELP debt has jumped from 7.3 years in 2006 to 9.9 years.
- Students who rely on the Youth Allowance are among the poorest people in Australia.
- In the 1990s, just 1 in 14 students worked full time and studied full time. That has doubled to 1 in 7 today.
"These findings show that HECS has transformed from a relatively easy-to-pay-off contribution to an ongoing financial burden," said Jack Thrower, Researcher at The Australia Institute and author of the report.
"Support for students is inadequate, with many living in poverty and an unprecedented proportion of students juggling full-time study with full-time work. Government decisions show their priorities and decades of governments have deprioritised the education and wellbeing of next generations," said Greg Jericho, Chief Economist at The Australia Insitute.
