Many Australians might not think too deeply about their HECS/HELP loans until the recent indexation, increasing our student loans by 7.1 per cent.
While for Australians who study in Sydney, the city hosts three out of the five most expensive universities in the country.
So, what is this? And what effect are these loans having on those who are struggling to pay them off?
Click the link below and listen the full episode:
On today’s episode of This Arvo In Sydney, host Sacha Barbour Gatt and LiSTNR journalist Kimberley Braddish discussed the HECS/HELP fee and how much it really costs you.
Braddish said that in Sydney, the University of Technology Sydney has the most expensive student debts, next to the University of Sydney and then the University of New South Wales.
Followed by the current indexation, a $20,000 loan would go up by $1,420, a $40,000 loan would be increased by $2,840, and a $80,000 loan would jump by $5,680.
I feel like I wasn’t informed on the real cost of having a HECS debt that large. It probably would’ve influenced my choice of university as well,”
One of the Sdyenysiders with HECS debt said.
Universities used to be free from 1974 for about 13 years, while the HECS was first introduced in 1988.
So far, 7.1 per cent is the highest level the debt has been adjusted in three decades since the government scheme began.
It’s going to be costing you more than what you are paying, so you are never, ever, ever gonna get to the end, and how is that fair?”
Independent MP Tammy Tyrell said,
For Australians who often think student debts are stress-free, experts say it can affect your home loans and bring down your borrowing power.
Mark Chapman, Director of Tax Communications at H&R Block said:
This can obviously greatly impact the ability to get a loan that’s big enough to purchase a home or even to get a loan at all.”
Hosted by Sacha Barbour, This Arvo in Sydney is a 10 to 12 minute daily news podcast made just for Sydney! Listen now on the Listnr app.