A Burden for Young Australians
The HECS system, which allows students to defer their university fees until after they graduate and earn a certain income, has become a significant financial burden for many young Australians. With nearly 3 million Australians carrying tens of thousands of dollars in HECS debt, the total amount owed to the government has reached a staggering $78 billion.
Ben Schuster, a veterinarian who graduated in 2016, currently has a HECS debt of $40,000. He believes that if he had known his career path, he might have chosen a more direct route. His wife, Cait, who is studying arts law, has a debt of $52,000. She feels that the debt is hindering her ability to achieve her life goals.
Setting the indexation rate for HECS debts to the lower of the consumer price index and wage price index.
Changing the date when HECS debts are indexed to after June 30, when tax returns are due.
Amending bank lending practices to exclude HECS debt from overall debt calculations.
The review also found that HECS debt is affecting young people's ability to buy a home. The banks include HECS debt as part of an individual's overall debt, making it more difficult for them to borrow money.
Ben and Cait, despite having high HECS debts, recently managed to enter the property market. However, they were unable to borrow as much as they wanted. They believe that banks should give more consideration to people in their situation and provide them with more flexibility.
The Prime Minister has promised to make the HECS system simpler and fairer, but has yet to provide specific details. Mary O'Kane urges the government to implement the review panel's recommendations as quickly as possible.
Many young Australians believe that changes to the HECS system are necessary to help them achieve their financial goals and purchase their first home.