A Melbourne woman, identified only as Monica, has accumulated a staggering $130,000 in student debt, alongside $30,000 in upfront fees for her university studies. As she approaches graduation and prepares to become a registered psychologist after six years of education, she reflects on her past decisions, expressing regret about certain choices made at the age of 18.
Despite her satisfaction with her career path, Monica acknowledges that she wishes she could share insights with her younger self. Growing up in a low-income environment, and facing challenges such as being kicked out of home at 18, she had limited support when choosing her degree. Initially, she avoided prestigious institutions like Monash University or the University of Melbourne, fearing their high fees. Instead, she fell for the marketing tactics of private education providers and enrolled in a Bachelor of Criminology and Justice, drawn by the promise of a two-year completion time.
However, upon graduating, she discovered that this accelerated programme did not expedite her job search; employers were indifferent to the programme’s shortened duration. This degree alone cost her $66,000, significantly contributing to her debt. Much to her later dismay, she learned about Commonwealth Supported Places (CSPs) that could have halved her fees at a university. The absence of this knowledge left her feeling naive and embarrassed.
After her initial degree, Monica pursued further studies at the same private institution, only to later attend Deakin University for a graduate diploma and master’s in professional psychology. At this point, she had reached the HECS/HELP borrowing limit of $126,000, necessitating an upfront payment of $33,000 for her master’s degree. To manage this financial burden, she took two years off to work full-time, diligently saving to afford her tuition fees.
While education costs vary widely, especially after the Coalition government’s 2021 changes that increased fees for arts degrees, Monica’s situation remains daunting. Recent reforms by the Albanese government to address HECS/HELP debt indexation and a proposed 20% reduction in debt may provide some relief, but Monica worries about the long-term implications of her large student loan on her financial future, particularly regarding home ownership.
She urges young people to conduct thorough research before enrolling in tertiary education, advising them to compare course options across different universities. Finance expert Joel Gibson echoes this sentiment, cautioning against viewing student loans as “free money.” He emphasises the importance of understanding that student debt, though manageable when used wisely, still constitutes a significant financial obligation. Monica’s experience serves as a cautionary tale about the critical nature of informed decision-making in higher education.