Forecast show debt set to increase by more than 4%
The three million or so Australians with HECS debts are in line for another hefty slug. Estimates are pointing to an increase of more than four per cent and that's after last year's 7 per cent hike. In the lead up to this year's rise on the first of June its looking increasingly likely the government will reform the debt system.
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TVTranscript
00:00 Psychology graduate Amy Jolliffe grew up in poverty, believing university would be her
00:07 path to a better life.
00:09 It's been the opposite. I now wish that I'd dropped out of school when I was 15 and became
00:13 a chef or done my diploma in community services.
00:17 Today she feels stranded, her $64,000 hex debt a barrier to completing the further study
00:23 she needs to work in community mental health.
00:26 I'm feeling completely overwhelmed and disillusioned. I'm feeling hopeless about my future.
00:35 Amy's now thinking of leaving Australia and giving up on her education to work as a scuba
00:40 instructor overseas.
00:41 I'm going to leave my country behind me and all my study and all my hopes, all my dreams,
00:47 everything I've worked for.
00:52 Hex debts have been growing sharply. Last year saw a 7.1 per cent annual indexation
00:57 hike. This year between 4.2 and 4.8 per cent has been calculated by the Parliamentary Library.
01:05 Which is really going to trap people into a student debt spiral.
01:10 Green's deputy leader, Marine Faruqi, says the modelling shows debts will have risen
01:14 by about 16 per cent or $12 billion during the government's term.
01:20 Someone with an average debt of $26,000 will face a rise of $4,000 in their debt in just
01:29 the first term of the Labor government.
01:31 The government's flagged that relief could be on the way. It's commissioned a higher
01:35 education review which also called for indexation relief for students.
01:41 We're examining the recommendations and we'll be making announcements pretty soon on that.
01:49 We of course have a budget coming up.
01:53 Students will be waiting to offer a grade.
01:55 [BLANK_AUDIO]