Number of Queenslanders with more than $130,000 student debt triples in five years

The number of Queenslanders with student debt totalling more than $130,000 has doubled in just the past five years, shock new data reveals.

The number of Queenslanders with student debt totalling more than $130,000 has doubled in just the past five years, shock new data reveals.

The total HECS/HELP debt held by Queenslanders has also tripled in the past 10 years, despite the number of people with the loans only increasing by 70 per cent – meaning more people are carrying significantly higher debt.

Education Minister Jason Clare said a review was taking place into the HELP system, including factors around affordability, access and its basic operation, while Opposition education spokeswoman Sarah Henderson called for urgent reforms.

Education Minister Jason Clare. Picture: Nikki Davis-Jones

It follows outrage over student debt being indexed at 7.1 per cent – the rate of inflation – at the start of this month.

Analysis of Australian Taxation Office data shows the amount of HECS/HELP owed by Queensland residents has tripled from just over $5 billion in 2012-13 to more than $15 billion in 2021-22.

Over that period of time, the number of Queensland residents who owe HECS/HELP fees only increased 72 per cent, from 362,268 people to 622,978.

The number of Queensland residents who owe more than $130,000 each in student loans has more than doubled from 4261 people in 2017-18 to 8617 people in 2021-22

These figures predate the June 1 indexation date, meaning the debts are likely to be higher again soon.

The previous Coalition government capped the amount of student debt that could be accrued to $113,028 for most students, or $162,336 for students studying medicine, dentistry and veterinary science.

Mr Clare said the Albanese Government had established the Australian Universities Accord which is considering a range of issues, including affordability, access and the operation of the HELP system.

“It’s important to remember that HELP loans are not required to be repaid until a person reaches the income repayment threshold,” he said.

“HELP repayments are a set percentage based on your income. They don’t go up unless your salary does. It’s built on a really important principle – you pay what you can afford. And you don’t pay more unless you earn more.”

Opposition education spokeswoman Senator Sarah Henderson. Picture: NCA NewsWire / Martin Ollman

Senator Henderson said while the Coalition had capped the amount of student debt that could be accrued, this year’s indexation impacting people’s ability to get home loans.

“I have called for urgent reform of the HECS payments system so that young Australians are only charged indexation on the balance of their loan,” she said.

“It is manifestly unjust that HECS debtors are being gouged because loan repayments made during a financial year are not taken into account when indexation is calculated.”