When I enrolled in an arts degree many years ago, the last thing on my mind was how much the degree would cost me.

That’s because I got a Commonwealth-supported place, and that came with HELP – the Higher Education Loan Program that has helped millions of Australians receive a university education without having to worry about paying the cost upfront.

The HELP system has assisted millions of Australians get degrees, but it needs an overhaul.Credit: Peter Braig

I knew I’d start paying it off when I began earning what seemed like (to a teenager) a decent amount of money, and I believed it when my parents told me it was the best sort of debt I could have.

Today, I’m still paying off my HELP debt, thanks to further study. And luckily it is now quite small.

But I’m still one of about 3 million Australians who owed a collective $74 billion as of June 1 last year.

And many of those people, particularly recent graduates, will be very worried about how much their degrees will cost them as their debts ratchet up thanks to high inflation and the way those debts are indexed.

Independent MP Monique Ryan said last week that an average Australian who was earning $60,000 and had recently finished a degree, with an average-sized HELP debt, would have ended up with a larger debt last year, despite making repayments.

They would have paid off about $1500 through the year, but because of indexation, that debt would have risen by $1700.

QOSHE - HELP: Why the HECS debt system needs a rethink - Rachel Clun
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HELP: Why the HECS debt system needs a rethink

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24.03.2024

When I enrolled in an arts degree many years ago, the last thing on my mind was how much the degree would cost me.

That’s because I got a Commonwealth-supported place, and that came with HELP – the Higher Education Loan Program that has helped millions of Australians receive a university education without having to worry about paying the cost upfront.

The........

© The Sydney Morning Herald


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