E&OE

Emily Arnold:
Obviously, HECS debts are about to get larger. What is Universities Australia’s take on that? How is this going to affect universities?

Catriona Jackson:
Look, we are always concerned about increasing financial pressure on students, and there are a range of factors there. But remember, the way students make their contribution to university fees in Australia is quite different to the rest of the world. So, there are no upfront fees for most students. They pay when they start earning a certain amount of money. So, the way you pay is through the tax system, and for many students, especially those young students coming in straight from school, they won’t start paying those debts back until they earn almost $50,000 a year. For some of them it’ll be well after university. So, yep. CPI going up means the debts will get a little bit bigger because they are indexed against CPI, as lots of things are, but it just means you’ll be paying a little bit longer.

Emily Arnold:
Yeah. So, you certainly don’t think this should deter people from studying at university?

Catriona Jackson:
Look, it really shouldn’t deter people from studying at university. That’s why we have this scheme, the HECS scheme, which is an Australian invention and a great invention. It’s allowed many more people to study at university. So, we now have 33 per cent of the nation with a university degree. Back when I went to university, back in my dark ages, it was less than 10 per cent. So, this is a revolution. It’s meant the nation can afford to educate many more people.

Emily Arnold:
Absolutely. Look, you have summed it up so well. Is there anything else that you’d like to add to that?

Catriona Jackson:
Look, we know there’s financial pressure on students. We know that wages are not keeping up with inflation and that’s an issue for everyone, but an issue for students who are trying to get by as they do their studies. But we really would urge them to just think: this will make your debt a little bit longer to pay off, but only a little bit. And you don’t have to start paying until you’re earning a salary close to $50,000. So, the scheme is designed not to be disincentive to study. If you study at a university, your lifetime earnings will be significantly bigger. You’ll just have more opportunity. So, see it through that lens.

Emily Arnold:
Sorry. The sound just went a bit funny on that last section. I might just get you to say that again. Yeah, what was it that you wanted to add?

Catriona Jackson:
Absolutely. So, if you do a university degree, your lifetime earnings will be considerably larger, both for men and for women. Your prospects, to be able to reach a full potential in life, will also be considerably bigger. So, I’d see it in that lens. We have a great system. No upfront fees. So, when you’re thinking about studying, think about all the rewards you’ll get, the bigger contribution you’ll be able to make to the Australian economy in society.

Emily Arnold:
Beautiful. Catriona, thank you.