Students Could be Getting Some Support With Their HECS And We Stan This

Can we get a heck yeah? 🙌

In some stunning news this week, students could be receiving a little more support when it comes to paying their HECS debt.

And it’s all because of a recent report, detailing some suggested changes as to how to improve Australia’s higher education system.

Essentially, the report conducted independently by the Australian Universities Accord (AUA), found Australia’s current system as “world-leading”, but could be better.

The government could choose to make these changes, amend some of these suggestions or ignore them completely.

Federal Education Minister Jason Clare said on ABC Afternoon that they will respond in the next few months.

“I've said that we will respond, and we will set out what the first stage of our response is to this big, bold plan," he said.

“It's a plan for how we reform universities over the next decade and beyond.

“But I'd set out the first stage of our response in the next couple of months.”

Here are just some of the changes the report has suggested 👇

Helping students with student debt.

I’ve been working full time in my profession for 15 months. I have made payments to HECS every fortnight. With the last indexation, I now owe more than what I originally did 15 months ago. Every payment made is now redundant.

— x-Kezzabear-x (@KezzaBear24) February 28, 2024

Student debt isn’t fun and after the rise in indexation last year, the review has found that students need help.

As a result, the report suggests indexation rates be based on inflation or wages, whichever is lower.

The report also suggests lowering the amount of money for people who are low-income earners so your debt doesn’t rise faster than your income.

Right now, if you are earning above $51,550, you would have started paying your HECS debt back. The report has suggested that this threshold be raised.

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Unpaid placements are a red flag.

Unpaid placements are affecting students so badly to the point that the report called them ‘placement poverty’. Yikes.

The AUA was worried unpaid placements would deter students from studying their preferred course.

And as a result, the report suggests the government work with higher education providers and employers to introduce payments for unpaid placements in areas such as nursing, care and teaching.

For context, Bachelor of Nursing students have to complete a minimum of 800 hours throughout their course.

Getting rid of the job-ready graduate scheme.

Back in 2020, the government at the time announced they would be raising the cost of specific university courses. It was called the job-ready graduate (JRG) scheme.

The AUA report has said “the JRG package needs to be replaced. Its purpose of providing price signals to influence student subject choices has failed.”

Unfortunately, the scheme has meant past and current students now have large HECS-HELP loans which don’t reflect their future earning potential.

So, the report is saying “get rid”.

Doing better for regional higher education.

Higher education needs to be better delivered to regional and remote Australia, the report found.

The AUA has suggested a needs-based funding model which better reflects the increased cost of education students in these regions.

To help students in regional areas, the report suggests:

• Adding more Commonwealth supported medical places in these areas.
• Expanding programs like Regional Study Hubs to help students stay in school.
• Thinking about creating a National Regional University to better connect colleges in regional Australia.

Whether or not the government agrees to make all 47 recommendations the report suggests, we don’t know yet.

But we're keeping our fingers crossed and our ears open 🤞