The cost of living has skyrocketed post-pandemic, between the rise in groceries, higher profit margins, stagnating wages and the housing crisis, university students have been doing it tough.
Young people are uniquely hurting, with many struggling to see a financially secure future.
University of Wollongong business student, Sonia May Murray is homeless and relies on friends to provide her shelter.
“It’s dog shit,” Ms Murray said.
“Currently I am in a dire living situation. I’m living on a lounge and have been for a couple of months.
“Getting a job is super difficult. You’re probably going to be looking for something part-time which not everything is looking for.
“I’m doing three subjects, and I don’t think I have enough time to be able to do a part-time job.
“I cannot imagine how someone would support themselves fully using a job, because that would require at least a part-time position and full-time uni.”
For those who choose to pursue further education, the hope of a career in their chosen field is what keeps them motivated.
However, the HECS/HELP debt is one challenge that needs to be considered, as students consider a way forward in establishing financial security.
HECS takes a percentages of former students’ taxable income, slowing down their ability to build savings large enough to own a home by keeping them under constant threat of growing debt.
Source: data.gov
HECS debt is the default method Australian tertiary students (such as university and TAFE students) use to pay for their education.
It delays the education fees which can be difficult for students to afford on patchy incomes.
UOW creative writing student, Zali Gavin said her HECS debt is a big contributor to a growing feeling of financial insecurity.
“I have absolutely always been conscious of the cost of living and our eroding economic climate and how impossible it might be to repay my student loan if I’m still struggling to pay rent in the future,” Ms Gavin said.
The Labor government is looking to address concerns over HECS with a swathe of changes being introduced for the upcoming financial year.
At the 2025 post-election Labor caucus, Prime Minister Anthony Albanese said a 20 per cent cut to the HECS debt would be the first piece of legislation his government intended to introduce.
“I think that’s (the HECS cut) important not just in itself, but for what it says to our commitment to inter-generational equity. Young people deserve a fair crack, and we want to look after them,” Mr Albanese said.
“We want a strong economy, but we want a strong economy so that our people prosper and we lift living standards, and we look after people. We look after opportunities going forward.”
The cut comes on top of the Labor government’s change to indexation rates for the HECS debt last year, retroactively lowering the rate from being tied exclusively to inflation.
Note: Red points represent indexation prior to the change. Source: Australian Taxation Office
It also comes accompanied by new reforms to HECS raising the threshold amount for the start of compulsory repayment from $54,000 to $65,000, as well as taking mandatory repayments over that threshold, instead of as a percentage of the total taxable income.
Source: Australian Taxation Office
Ms Gavin said the changes were a relief in the midst of mounting financial pressure.
“I feel a bit more secure knowing the mandatory repayment threshold has been raised, it means I can really set myself up for success and have that safety net for when I do need to make those payments,” she said.
“I feel like there’s more hope that I won’t be scraping the bottom of the barrel.”
However, Ms Murray believes it misses the bigger issues.
“I appreciate that now people are able to keep up to $65,000 of their own money, to have savings and actually be able to settle themselves without money being taken,” Ms Murray said.
“I don’t think it’s actually going to address a lot of the issues like housing and other financial issues because they’re more systematic.
“I think it will make it a bit easier to tackle them on a personal level but it’s completely aside from the actual issues.”
Ms Murray said she was also concerned about how the changes may leave new students behind.
“It straight up seems to help existing students and people already inclined to go to university,” Ms Murray said.
“I can’t imagine being a first-year student currently and your $4,000 of HECS debt is being cut by 20 per cent, that seems much less significant than someone like me (with a much larger debt) getting a 20 per cent cut.
“I don’t think it’s going to encourage new students to go to university at all.”