A Growing Burden for Young Australians
The Higher Education Contribution Scheme (HECS) is a loan scheme that allows Australian students to pay for their university education through a deferred payment system. However, the scheme has come under scrutiny as the debt burden on graduates continues to grow.
A recent report by the Universities Accord Panel found that nearly 3 million Australians are carrying tens of thousands of dollars in HECS debt, with a total of $78 billion owed to the government. This debt is having a significant impact on young people's lives, making it difficult for them to buy a home or save for the future.
Changing the way HECS debts are indexed, so that they are not automatically increased each year in line with inflation.
Changing the date when HECS debts are indexed, so that they are not indexed before the tax return is lodged.
Changing the way banks treat HECS debt when assessing home loan applications.
The government has promised to make the HECS system simpler and fairer, but has yet to outline the specifics of its plans. In the meantime, the growing burden of HECS debt is a major concern for young Australians.