A young Australian woman with regrets said she should have thought more in advance about how much it would cost her to go to university after racking up $83,000 in student debt.
Jessica Herbert, who now works in disability and community service, said that if she had free time, she would have chosen different areas of study and pursued a career in nursing or teaching.
Ms Herbert completed two Masters degrees after studying a Bachelor of Business with a major in Event Management and Marketing.
“I don’t regret going to college, but I do regret not thinking through the cost,” Herbert said. SBS Perspective.
“I think if I had chosen something that wasn’t as saturated as event management… it would have taken me down a different path.”
Ms Herbert was forced to abandon her master’s degree due to lack of government funding for the course.
He later spent 10 years working in event management for music festivals and outdoor festivals.
While working, her HECS (Higher Education Contribution Scheme) debt soared due to the annual indexation rate.
Jessica Herbert (pictured), who works in disability and community service, said she would have pursued a career in nursing or teaching to reduce her huge HECS debt.
The figure is adjusted each year in June to reflect rising costs of living.
Ms Herbert, who worked as a contractor, did not earn enough to pay the fees.
The annual rate soared to a whopping 7.1 percent in 2023 — the biggest increase in 33 years.
The current income threshold at which students must make mandatory repayments on HECS loans is currently $54,435.
Ms Herbert said that on reflection, she might have had a different view on pursuing higher education if she had chosen other courses because that would have reduced her overall HECS debt.
It experienced additional impacts to its revenue during the Covid-19 pandemic when many outdoor events were forced to close.
Eventually, Ms Herbert decided to continue her studies and did a six-month community service course at TAFE.
Figures from leading comparison website Finder found that 28 per cent of people with student debt are extremely concerned about their ability to repay the loan.
The indexation rate, which is adjusted every fiscal year, soared to a whopping 7.1 percent in 2023, the biggest increase in 33 years (file image)
The survey, which included 271 respondents, also found that 12 percent believe they will never be able to repay their debt.
Another Australian student, Alicia, 28, who has racked up $81,000 in debt due to indexation, said she fears she will never be able to pay the money back.
The high school teacher completed a double major in science before continuing her studies for a Bachelor of Environmental Urban Planning.
She then pursued a master’s degree in teaching, but the combined degrees left her with $71,000 in student debt before indexation was applied.
Alicia said that while she doesn’t regret going to college, the cost structure of student loan payments needs to be reviewed.
“It’s frustrating that even with a good salary, my HECS seems to keep increasing – I was very surprised when I saw that amount when I did my tax return this year,” she said recently. news.com.au.
HECS It allows students to avoid paying tuition fees in advance. While the loan is interest-free, the amount is indexed during the financial year.
The current indexation rate is 4.7 percent.
