A student who had no idea her university debt would surge has lashed Australia’s “broken” HECS system - declaring it’s becoming “impossible” for Gen Z to go to uni.
There is no interest charged on HECS/HELP loans, however, indexation is added on June 1 each year to adjust debts according to the consumer price index to remain in line with inflation.Last year, those with HECS debts were hit with a 7.1 per cent increase as inflation skyrocketed. The video was flooded with comments from other students also unaware indexation would be added to their debts.“This makes me want to cry,” another wrote.“Gen Z here, already paid off my HECS debt by myself and only took about 1 year there is no excuse,” argued one graduate.“Everyone saying to pay it off as you go, but a lot of us dont have that money and are hoping to get it after we finish the degree,” agreed another follower.
“So many people have $30,000 or $40,000 HECS debts – debts which in many cases are rising faster than they can be paid off,” she told news.com.au. “Then he went to the actual bank and got confirmation from them on the day that I signed the contract, basically saying the bank won’t give you that much.”