A Struggle with HECS Debt
Amy Jolliffe, a psychology graduate, grew up in a housing commission home with a strong belief that education would be her ticket to a better life. However, after accumulating $64,000 in HECS debt, she feels disillusioned and trapped.
Each year, her debt increases with inflation, adding to her burden. Last year's record-high increase of 7.1% added over $3,600 to her debt. With no end in sight, she feels overwhelmed and hopeless about her future.
The looming June 1st indexation hike is expected to be between 4.2% and 4.8%, adding another $1,113 to $1,272 to the average student debt of $26,494. This rising debt is making it increasingly difficult for graduates to afford basic necessities and pursue further education.
Amy's dream of becoming accredited in community mental health requires a Master's degree, which would involve unpaid placement hours, further exacerbating her financial struggles.
The Greens are calling for changes to HECS indexation, suggesting it should be capped at the lower of CPI or Average Weekly Earnings to prevent debt increases exceeding pay rises. A petition by Teal MP Dr Monique Ryan advocating for this change has garnered over 250,000 signatures.
Shadow Education Minister Senator Sarah Henderson also supports HECS indexation reform. Additionally, the Universities Accord endorsed reforms to indexation.
Federal Education Minister Jason Clare acknowledges the need for a simpler and fairer HECS system and has promised to respond to the Accord's recommendations shortly.
However, any changes to HECS/HELP would require convincing taxpayers who did not attend university and generally earn less.