After three years of University Australian students are about to embark on the adventures of their lives. Those who decide to enter the workforce immediately will most likely find themselves in graduate roles or entry-level jobs that may pay under the threshold of $50k. Others will begin travelling the world and settle overseas. Both options, allow them to defer their debt.
No wonder these graduates are happy! Many of them have found the loophole to avoid paying their HECS debt. It of course enabled plenty of fun during the university period also saving thousands of dollars.
The HECS-HELP scheme is both a student loan and a student discount. Eligible students may access a HECS-HELP loan to pay their student contribution amount.
As a result of the Australian government generosity, the country’s debt is equating to $80 million a year, which be spent elsewhere in education. Universities are subject to reduced government funding, which is clearly not helped by the loophole in their policy in claiming back HECS debt.
Moreover, when students leave overseas for work and their skills are not being utilised but kept outside the country, Australia is missing out on recovering debt and benefiting from freshly graduated specialists.
The Government should work on reclaiming back some of the debt so it can be used to benefit current and future students as well as the future of Australia.
Check out our upcoming conference on Business Improvement in Universities on the 24th& 25th September and find out more on how Universities are coping.