A 7.1 per cent indexation increase to the Australian Higher Education Loan Program (HECS) is set to hit millions of Australians with a HECS/HELP debt on June 1, with a percentage of their salary deducted from each wage packet to pay back the loan. The Greens' education spokesperson said this was 'fundamentally unjust' and warned that a 'debt avalanche is just days away.'
The hike in indexation will be applied to current HECS debts one month before involuntary payments made over the last year come into effect. This has caused concern among students and graduates who are already struggling under massive student loans.
The Greens' education spokesperson commented on the situation: "This is fundamentally unjust for Australia's young people, who have been dealt an unfair hand by having their education costs skyrocket while wages stagnate."
Nick Moraitis, CEO of the Foundation for Young Australians, also expressed his desire for changes to be made in how repayments are managed: "We need an overhaul of our repayment system so that it better supports young people as they navigate increasingly precarious work environments," he said.
The dire reality of university debt in Australia has recently been exposed through a Freedom of Information release showing some students battling bills exceeding half a million dollars. If they don't pay off some portion by June 1st, these individuals may see drastic increases in their outstanding balances.
For example, the largest HELP/HECs debtor will witness their owed amount rise by an astounding $28,745 bringing the total up to $765,816 if no action is taken before June 1st. Meanwhile, those bearing the second-largest burden will face additional charges totaling $19,343 within less than two months.
As more information about these alarming figures comes into public view and awareness grows around Australia's mounting student loan crisis fueled by rising interest rates and climbing tuition fees, there is hope that educational reform and debt relief will soon become a priority for the nation's policymakers.