32 C
Byron Shire
September 21, 2023

Students drowning in debt?

Latest News

Tweed Council seeks businesses to join it’s rail trail ‘Connect Program’ 

Paying for the maintenance and providing an engaging visitor experience for the Tweed section of the Northern Rivers Rail Trail is a key aspect of Tweed Shire Council’s (TSC) Connect Program. 

Other News

Man dies at Dalwood Falls

A report will be prepared for the Coroner after a body was pulled from the water at the notoriously dangerous Dalwood Falls, about 14km west of Ballina on Sunday.

Labor’s budget falls short on flood funding: MP

Tamara Smith, Member for Ballina and NSW Greens Disaster Relief Spokesperson, has welcomed an additional $150m in funding for the Northern Rivers and Central West flood recovery in Tuesday’s NSW budget.

Go Feros cronies

My oldest 88-year-old friend entered Feros Village for ongoing care. After paying a large amount of money, she was...

Gold Coast Chamber Orchestra is a Real Gem

Season two of the Gold Coast Chamber Orchestra sees performances of Classical Gems conducted by Chen Yang in two shows with concert one on Sunday, 24 September at the Murwillumbah Civic Centre and concert two on Sunday, 8 October at Bond University.

Basketballers head to the Cavanbah Centre for carnival

Byron Bay Basketball Association held their senior carnival at the Cavanbah Centre last weekend in preparation for hosting Sunshine...

Jali Land Council accused of land grab

Around 80 residents of Cabbage Tree Island, just south of Wardell, say they want to return home after the 2022 floods, but the Local Aboriginal Land Council, Jali, have other ideas.

Graduate in deep water.
Rising debt levels are a problem for many graduates. Cloudcatcher Media with Midjourney AI.

Parliament hasn’t been sitting this week in Canberra, but the ramifications of recent federal budget decisions continue to ripple out, with the student debts of three million Australians rising 7.1 percent, in line with inflation.

The new rate of indexation will apply to more than $74 billion worth of outstanding HECS, HELP and vocational education loans, causing the average student debt to rise by $1,775. It’s the highest jump in more than thirty years.

While these sorts of debts aren’t recovered until incomes go beyond $45,880 (lowered by the previous government from $52,000), it’s far from free money, with accumulating debts affecting graduates wanting to get loans, including mortgages. If not paid out, student debts follow people around until asset distribution at death.

Some existing HECS debts are truly massive. According to the Australian Tax Office, the top 10 biggest debts range from $303,294 to $737,070. The student debt weight is disproportionately borne by women.

Member for Richmond Justine Elliot with Education Minister Jason Clare, visiting Mullumbimby. Photo Tree Faerie.

The ticket to the show

Federal Education Minister Jason Clare, who was born the year Gough Whitlam became Prime Minister and has described the former PM as ‘an Australian giant’, appears to have no qualms about further entrenching the HECS policy created by Bob Hawke, which dispensed with Whitlam’s dream of free university study.

Mr Clare told Sydney radio last week that tertiary education was the ‘ticket to the show’, with the average yearly income of someone who had been to university $30,000 higher than someone who had only completed Year 12. Treasurer Jim Chalmers concurred, saying the government is not considering any pause or freezing of HECS indexation, although higher education affordability and access is being examined as part of the Australian Universities Accord, which will deliver a report to government later this year.

Two months ago, Labor and the Coalition blocked a private member’s bill designed to stop indexation on student loans, with the Greens arguing at the time that millions of Australians would be worse off as a result. Minister Clare said that stopping indexation would cost taxpayers $9 billion. Crossbenchers argued that the alternative would be a ‘debt avalanche’ for graduates.

There’s no doubt that rising debt levels, coupled with the increasing cost of living, has locked many young university-educated Australians into a situation where decisions like buying a car, a first home, doing further study, or starting a business need to be postponed, in some cases indefinitely, with the average time to repay a debt (prior to the latest rise) approaching ten years. According to the National Tertiary Education Industry Union, business management graduates can expect to be repaying debt for 44 years.

Suicide Prevention Australia has formally supported reform of the HECS scheme, noting that suicide is the leading cause of death for young people, and that those who die by suicide are eight times more likely to be in debt.

Looming debt for graduates.
Looming debt. Cloudcatcher Media with Midjourney AI.

Dying to learn

We’ve still got a long way to go before the education debt situation is as dire as the USA, with college fees and debts rising 300 per cent in the last forty years, while starting salaries for graduates have barely changed. 44 million Americans now hold about $1.8 trillion in student loans.

President Joe Biden’s attempts to cancel overwhelming student debts have been challenged by Republican states in the Supreme Court.

Here in Australia, there’s no such thing as free education, even without considering the tertiary sector. Earlier this year the Futurity Investment Group found the national average cost of 13 years of government education was $75,000, after decades of under-funding of the sector. This included school fees, transport, uniform costs, sporting and electronic equipment, outside tuition, books and other costs.

Catholic education fees averaged $163,000, and independent schools averaged $209,000, rising to over $300,000 in metropolitan areas.

Jason Clare has pointed out that there was never free tertiary education in Australia, as the costs were borne by the taxpayer (and fewer people went to university in Whitlam’s time). Back then, the idea was that having more educated people in the country, regardless of whether they were rich, would benefit everyone.

How quaint.

David Lowe
David Lowe. Photo Tree Faerie

Originally from Canberra, David Lowe is an award-winning film-maker, writer and photographer with particular interests in the environment and politics. He’s known for his campaigning work with Cloudcatcher Media.

Long ago, he did work experience in Parliament House with Mungo MacCallum.


Support The Echo

Keeping the community together and the community voice loud and clear is what The Echo is about. More than ever we need your help to keep this voice alive and thriving in the community.

Like all businesses we are struggling to keep food on the table of all our local and hard working journalists, artists, sales, delivery and drudges who keep the news coming out to you both in the newspaper and online. If you can spare a few dollars a week – or maybe more – we would appreciate all the support you are able to give to keep the voice of independent, local journalism alive.


  1. Here you go again David: “ but the ramifications of recent federal budget decisions continue to ripple out, with the student debts of three million Australians rising 7.1 percent, in line with inflation.”

    This is NOT. a ramification of the budget but the way the debt has long been calculated. Without high inflation, it wasn’t seen as an issue much. Education minister Jason Clare ha already announced a review of the way this is to be calculated.

    Did you really not Know this stuff? If no you don’t, don’t write stuff without doing your homework. If the answer is yes you do then shame on you and don’t call yourself a journalist.


Please enter your comment!
Please enter your name here

Facelift for Cape Byron walking track – but not everyone happy

The Cape Byron walking track that leads from Wategos Beach towards the Byron lighthouse has been given a ‘facelift’ by NSW National Parks. But not all users are happy...

Varroa mite here to stay as NSW pivots from eradication to management of costly invasive species

The Varroa Mite ‘(Varroa destructor and Varroa jacobsoni) is a parasite of adult honey bees and honey bee brood. It weakens and kills honey...

Cycling race in Lismore this weekend to raise money for Westpac Rescue Helicopter

Whether it is getting on the track or watching the cyclists there are plenty of ways to get on board with the Lismore 2023 – Byron Bay Cycle Club Road Race this Sunday 24, September in Lismore’s CBD.

Labor’s budget falls short on flood funding: MP

Tamara Smith, Member for Ballina and NSW Greens Disaster Relief Spokesperson, has welcomed an additional $150m in funding for the Northern Rivers and Central West flood recovery in Tuesday’s NSW budget.