Students in Western Australia spend far more on their university degrees than other states, new research has revealed, with nearly two-thirds of those with a HECS debt having $5000-$60,000 left to pay off.
On average, students in WA spend $20,255 on tertiary education. In comparison, students in NSW spend $18,223, while those in South Australia only spend $12,466.
HECS debt lasts for a long time, particularly if you can’t contribute more from your paycheck to pay it off.Credit: Holly Thompson/ Supplied
The findings come from insurance company Choosi’s Cost of Career Report. Many students have cut down on travel, social activities and health, including gym memberships, to make up for the cost.
Siobhan Dunkley studied a four-year degree at ECU to obtain a bachelor of marketing, advertising and PR. She graduated in 2016 with $45,000 in student debt – well above the state average – including $6000 for a study tour.
Despite working in a full-time job since graduation, Dunkley still has more than $39,000 left to pay off due to the way HECS is indexed.
She said an indexation rate of 7.1 per cent applied to her loan in 2023, and one of 4.7 per cent applied in June, pushing her to start paying off more than the required amount from each paycheck.
“It really looms over you. I want to get rid of it,” she said.
“They sell it to you as the best debt to have, but you are not made aware of the longevity of the loan and how it can affect things like getting a home loan. You don’t even really think about those things at 17 or 18.
“We are fortunate enough to own our own home, as my partner’s company helped pay off their debt, but our borrowing capacity would have been significantly higher if I hadn’t gone to university.”
Dunkley said the cost-of-living crisis meant the HECS payments coming off her paycheck were hitting ever harder and she worried how much more she could realistically contribute to additional repayments.
Career and interview coach Leah Lambart said the cost of education could also stop some people changing careers later in life.
“People do feel their options are limited, particularly with a home loan or kids, and they find TAFE options or micro-credentials instead of an undergraduate, or postgraduate course,” she said.
“Internships and networking are necessary and are usually unpaid, which many feel they cannot accommodate while adding to their HECS debt.”
Lambart said some people saved up before changing careers and others were able to work part-time, but these were not options for everyone.
For high school graduates, Lambart said HECS debt created a lot of pressure to “get it right the first time” when choosing what to study.
She suggested students, unless they were sure of what they wanted, should take a gap year to learn more about themselves, and to research degrees and where they may lead before signing up.
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