$3bn Hecs Debt Will Deter Uni Study: Macklin

The Age

Wednesday October 26, 2005

JEWEL TOPSFIELD

VICTORIAN students and graduates owe more than $3 billion in outstanding HECS debts, prompting fears that rising fees will deter students from going to university.

New figures from the Australian Taxation Office show the Higher Education Contribution Scheme debt in Victoria jumped by more than $1 billion in the past five years.

Opposition education spokeswoman Jenny Macklin said the figure was certain to rise further following a 25 per cent rise in HECS fees at most universities.

"The prospect of carrying huge HECS debts is discouraging Victorian students, particularly those from low-income families, from going to University," Ms Macklin said.

"There also is evidence the very high levels of HECS debt are making it harder and harder for people to buy a home and people are delaying starting families."

The deferred HECS loan was introduced by Labor in 1989 and is now repaid gradually once a former student's subsequent income reaches $36,000.

In 1997, the Howard Government divided HECS charges into three bands, with rates based on estimated graduate salaries.

Ms Macklin said the average HECS fee paid by Australian students had doubled under the Howard Government.

The ATO figures show that Victoria has Australia's second highest HECS debt, behind NSW with a debt of $3.248 billion.

National Union of Students Victorian president Jeremy Kelly said the HECS debt was alarming and would deter some people from pursuing tertiary study.

But a spokesman for Education Minister Brendan Nelson said that in the past five years there had been a 31 per cent increase in students attending Victorian universities.

© 2005 The Age

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