Leigh Sales grills minister on proposed university changes

In upsetting news for university students, a plan to change HECS repayments and university fees set to be proposed in next week’s budget will see students repaying their debts when they’re earning just $42,000, and paying up to $3,600 per student more in fees. 

The current repayment threshold sits at $54,869, meaning that the planned reduction would be almost $13,000 less to be earned before students must begin repaying. 

The changes would be the biggest made to the student loan system in 10 years. 

Education Minister Simon Birmingham defended the proposed changes when he was grilled by Leigh Sales on 7.30 last night. 

“We think it’s important we get these debts paid back so we can maintain in the future the same type of generous student loans payment arrangement and fee arrangement that ensures that no student going to an Australian universities, regardless of their background, need pay $1 upfront,” he said. 

Sales pointed out the fact that university fees have increased dramatically since she completed her degree 25 years ago.

“Today a person in their 20s could still easily be in a starting job on about $45,000 a year and yet the same degree would cost $20,000, not $6,000,” she said.

“There’s something wrong with that isn’t there that young people in Australia now pay vastly more for their education and yet your salary as a young person has barely budged?”

Senator Birmingham continued his defence of the plan, saying that the university educated have “a significant advantage over other Australians in terms of their employment rates.”

“The average lifetime income is notably higher than the average lifetime income of non-university graduates.

“There are real benefits that are there. We’re trying to maintain fairness and equity across this system,” he said. 

“The reality is that students know the employability and likely income are enhanced by holding a university qualification. The lifetime benefits far outweigh the costs, which continue to be entirely deferrable under one of the world’s most generous student loans schemes.”

Do you think the changes to the student loan scheme are fair?