HECS Debts on the Rise Again: Because Who Needs Savings Anyway?

April 19, 2024 11:10 am in by

Get ready to tighten those purse strings…again! The 7% HECS debt increase last year was just the warm-up act. Experts foresee another hefty increase in HECS debts this year.

According to The Guardian, HECS debts are set to swell by 4.2% to 4.8% by June. For the average ex-student lugging around a $26,494 HECS debt, that means shelling out an extra $1,113 to $1,272. And if you pursued a pricier degree like Medicine or Law, well, let’s just say it’s going to sting a bit more.

Once upon a time, uni fees were actually free. Imagine that?!

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Why is there a surge in HECS fees again? It’s all based on some predictions from the Parliamentary Library for the Greens. The official number crunching is due later this month, with the final figures dropping in June.

For those trying to wrap their heads around last year’s indexation ordeal, here’s the lowdown: HECS debts get a little inflate-y boost each year to keep up with rising prices. Last year’s jump of 7.1% left many wallets lighter. This year’s 4.2% might seem like small fry compared to that, but hey, every penny counts – especially when the rising cost of living continues to make you haemorrhage money.

The debate rages on about whether HECS debts should even exist. The Greens are leading the charge for debt liberation, advocating for free education and a ceasefire on debt hikes. Will the powers-that-be listen? Let’s hope this year’s budget holds some relief.