Amy Jolliffe, a graduate with a HECS-HELP debt of $64,000, is one of many Australians struggling with the rising cost of higher education. High inflation and annual indexation have made it difficult for graduates to pay off their debts, leading to a growing sense of helplessness.
Government statistics show that the number of debtors with HECS debts in the $60,000 to $70,000 range has increased exponentially in recent years. In 2011, there were only 4,600 students with this level of debt. By 2016, that number had soared to 29,000. By the end of the 2023 financial year, over 86,000 people owed a debt of between $60,000 and $70,000.
The rising cost of living and the difficulty of paying off HECS debts have led to calls for change. Prime Minister Anthony Albanese has indicated that there will be HECS relief in the upcoming budget.
One solution to the problem of HECS debt is to stop borrowing and funnel more resources into paying off existing debt. However, many graduates have other debts, such as mortgages or credit card repayments, which make it difficult to allocate more money to HECS.
Leanne, a teacher in Tasmania, is one of many graduates who are struggling to pay off their HECS debts. She graduated with a four-year degree and completed a diploma to become a language teacher. However, she took a break from the workforce to raise her children, which meant that she had no connections in her profession when she returned to work.
As a result, Leanne could only secure part-time work for the first six years of her teaching career. This meant that she only had to make limited compulsory HECS repayments, and her debt grew considerably.
Now separated and a single mum, Leanne makes $300 in mandatory payments every fortnight and volunteers to pay an extra $150 a fortnight to try and escape the "debt spiral". She is also trying to save for a deposit on a house, but her HECS debt and other expenses make it difficult.
Leanne is one of millions of Australians who are struggling with HECS debt. The rising cost of higher education and the difficulty of paying off debts have led to a growing sense of helplessness. Many graduates are hoping that the upcoming budget will provide some relief.