Hecs Debt At $250m For Region

Newcastle Herald

Wednesday March 22, 2006

By MATTHEW KELLY Education Reporter

HUNTER graduates and students owe the Federal Government almost $250 million in Higher Education Contribution Scheme (HECS) debt.

Department of Education, Science and Training (DEST) figures show students in the federal seat of Newcastle are weighed down with more than $105 million in debt.

The seat of Charlton owed about $42 million, Hunter had more than $36 million and Shortland about $34 million.

The seat of Paterson had the lowest debt level at $28.3 million.

Nationally, about two million graduates and students owe $13.2 billion in outstanding HECS debt.

Ninety per cent of those owe less than $20,000, with the average time to pay off the debt being seven years.

In recent years the prospect of incurring a HECS debt has been linked to a decline in the number of school leavers choosing to go to university.

"Students of the Hunter are still not wealthy and I don't doubt the prospect of a large HECS debt has deterred some people from studying at university," Newcastle MP Sharon Grierson said.

"When the resource boom ends we are going to see the consequences of the Howard Government's lack of investment in the intellectual capacity of Australia."

But a spokesman for Education Minister Julie Bishop argued that HECS had allowed more people to attend university.

"Debt under the student loan schemes will continue to grow as the Government introduces new commonwealth-supported places and expands access to government loans to private higher education providers," he said.

Carrie Brisbane, 21, has a HECS debt of about $20,000 after four years studying for an honours degree in forensic science at the University of Newcastle.

She said it was an investment.

"I know it's there but it's something that I'll think about more when I've finished my PhD," she said.

HUNTER HECS DEBTS

Newcastle $106,890,883

Shortland $34,851,137

Hunter $36,361,101

Charlton $42,333,821

Paterson $28,364,794

TOTAL $248,801,736

© 2006 Newcastle Herald

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