How to avoid a massive HECS debt

Vocational Education and Training (VET) is a proven tertiary education pathway that leads to a great job, fantastic lifestyle and no HECS debt.

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Vocational Education and Training (VET) is a proven tertiary education pathway that leads to a great job, fantastic lifestyle and no HECS debt.

Going to university often seems like the natural next step when school ends. However, while a steady stream of school-leavers enrol, many finish with a pretty big bill and no guaranteed job. HECS fees can mount up - according to data from the Australian Taxation Office, students in NSW have racked up some $19.9 billion in loans. Many will be paying off their debts long after graduation.

With this in mind, there is another tertiary education option to consider that is a proven pathway to interesting and well-paid jobs. The NSW Government is making 100,000 apprenticeships fee-free from 1 July 2018, meaning no upfront training fees.

Apprenticeships also provide aspiring students a flexible and hands-on entry to the workforce.

Apprenticeships have proven benefits

Undoubtedly the biggest advantage to doing an apprenticeship is getting paid a salary while you learn. For example, over the four years of their training, data from the National Electrical and Communications Association suggests electrical apprentices can earn as much as $272,000 in wages.

It was a no-brainer for Lachlan Stitt, who is undertaking a Certificate III in Electrotechnology. “I was really drawn to the fact that there was so much growth in the industry, as well as the potential to earn good money,” says the 19-year-old, who is working on the Sydney Metro project.

Apprentices also get superannuation and leave entitlements and are often also entitled to money to help with things like tool and uniform expenses.

According to data from the National Centre for Vocational Education Research, trade apprenticeships have a 91.2 per cent employment outcome. Research from the Foundation for Young Australians also shows apprentices are happier and have a higher sense of self-esteem than young people in other post-school pathways. Plus they’ll avoid HECS debts.

Pathways to jobs

Currently, there are significant job opportunities for apprentices and skilled trades people in the construction and infrastructure industry. Nationally, some 300,000 extra construction workers will be required over the next decade. To meet demand in NSW, the government has committed to creating a more diverse and inclusive construction industry, with 20 per cent of the workforce on major public projects - such as the Sydney Metro and Lismore Base Hospital – to be made up of apprentices or ‘learning workers’.

Skilled construction jobs have potential for exciting career progression, as well as opportunities to earn salaries over $75,000 per annum.

VET qualifications are recognised all around Australia and there are no ATAR requirements to enrol. If your child is currently in Years 10, 11 or 12, school-based apprenticeships can actually count towards their HSC. This gives them the opportunity to fast-track their careers with real work experience and workplace mentoring, meaning they can start earning a full-time salary long before their peers.

Don’t rush into decisions

Ultimately, there are plenty of good and worthwhile options for your child to consider. Whether it be a move into skills-based VET courses, or pursuing a university degree, it’s a big next step. You essentially want to make sure your child doesn’t rush into any decision-making. Help them with researching all the options that are available to them, ask about their interests and passions, and see which training pathways resonate.

Understand what is important for your child in both the immediate and long-term future, and make sure all options are looked at. It’s a big step for them, and you want to ensure it all goes as smoothly as possible.

GALLERY

Top five trade apprenticeships

1. Electrician. Starting salaries for VET-qualified electricians can be as high as $91,000.

2. CarpenterQualified ‘chippies’ have a Certificate IIIand are in-demand across NSW.

3. PlumberThere’s plenty of work across NSW for licensed plumbers qualified through VET

4. MechanicCar mechanics have a Certificate III in Automotive – Light Vehicle Mechanical Technology.

5. ChefBecoming a chef takes about 18 months with a Commercial Cookery qualification.