Grattan Institute Proposal is unfair on Graduates

Increasingly insecure graduate work and the biggest ever financial burden for studying means the Grattan Institute’s latest report recommending the lowering the HELP repayment threshold is extremely unfair, says the National Union of Students.

“The National Union of Students is opposed to reducing the threshold for HELP repayments” said Sinead Colee, NUS National President.

“Students are already saddled with a huge amount of debt; asking them to pay that back before they have even reached the average graduate wage ($50,000 – $60,000) means imposing even further inequality on students in order to justify budget cuts by a government who has shown no regard for student needs.”

“In 2013-14 a $42,000 threshold would have doubled the number of graduates aged 25 or under who made a HELP repayment. That’s a huge amount of gradautes with a new hole in their already modest income.”

“Future students are already being asked to take more of the financial burden than ever before and Mr Norton’s proposal will only further discourage students from attending university and make life even more difficult for those who do.”

“The HELP/HECs debt structure is meant to be about paying back your debt when you are financially able and are benefiting from your degree. What Mr Norton is suggesting is that you should do that before you are. That’s simply unfair”

Ms Colee concluded, “At a time when the government should be trying to make university more attractive to students they seem determined to take them for everything they’ve got. We strongly discourage them from adopting Mr Norton’s proposal which would only make the system more unfair.”

“We need to lower fees for students not increase costs if we want to see an equitable university system.’

National Union of Students acknowledges the Traditional Owners of country throughout Australia and recognises their continuing connection to land, waters and community. We pay our respects to them and their cultures; and to elders both past and present.
Sinead Colee National President | National Union of Students