07 Jul 2020

Picture this. You finish your degree, graduating with a head full of complex theories, a few good headaches, the best memories and (ahem… cough) a pretty hefty HECS-HELP debt.

Is a degree really worth such a big blow finically?

First, let’s wrap our heads around student loans. Paying for your further education is pretty sweet in Australia compared to most of the globe. Under our system, Aussie citizens don’t have to pay anything up front to go to uni as all university students are entitled to the HECS-HELP scheme, which is partly a subsidy and partly a loan. Which is great news because you won’t have to sell a kidney to pay for your education!
 

How does the HECS-HELP scheme work?

When you apply for a course at any public university, you’re applying for a Commonwealth Supported place. This means the government will discount your degree and loan you the cost of the course fees which they pay directly to the uni through the HECS-HELP scheme.

There are also certain “priority” degrees such as nursing and teaching, which can get you a Commonwealth Supported place at a private university as well.

Other education options like TAFE have loan systems too, like the VET Student Loan scheme. These can work in a similar way to HECS-HELP, but they aren’t offered for every course so get researching!

What does it look like once I finish my degree?

We often hear horror stories about crippling student debt (mostly from America, to be fair), where students spend their whole lives working their asses off and can only seem to chip away at the interest. But fear not! Aussies don’t have to pay any interest on their student debts! (However, your debt could alter slightly over time to reflect changes in inflation).

But how will I ever pay back the debt you ask?

The best part about HECS-HELP is that you don’t have to pay back any of your debt until you’re earning over a certain threshold – which sat at $45,881 for the 2019-20 financial year. If your yearly taxable income is below that amount, you don’t have to pay any money back until you start earning more. So in theory, if you never make the big bucks, you never have to pay your student debt back which takes some pressure off.

So, after all that, is it really worth it?

Am I committed to this course? Can I see myself pursuing it? Can I see myself enjoying it?

These q’s may seem self-explanatory, but really show them the light of day when considering studying a degree.

If you’re answers are yes, then this is an investment that is absolutely worth it!

If you’re answers are no’s, maybe’s or prolonged uhh’s, that’s absolutely fine! We are blessed in the modern world to have an abundance of post-school options so do your research, get digging and don’t pressure yourself to have it all figured out or to fit to the mould you think you’re supposed to be in.

Is a degree really worth the debt? If you are actually keen on the course, then HELL YES! And thanks to Australia’s HECS-HELP scheme, you’ve got a sweet safety harness on your mulla.

Don’t hesitate to suss out our FinLit Webinar series for all thing’s money! Wanna learn more about being better with your money as a student? Check out the FinLit Academy. We’ve been stoked to hear so many positive responses from all of you legends that did FinLit after our Expo! It’s great to hear you guys are feeling more confident with everything and anything to do with money. So, get amongst it if you haven’t already!”