The discussion paper provides a historical overview of the Higher Education Contribution Scheme (HECS), now known as HECS-HELP, from its introduction in 1989 to the present day. It highlights the key policy decisions that have led to a dramatic increase in student contributions and maps these against the rising cost of living. 

The paper finds that while the original intention of HECS was to ensure students made a modest contribution to the cost of their education, the current system has shifted a disproportionate share of the burden onto students. It also finds current levels of income support is inadequate for students to cover the rising costs of education and living expenses. 

Key findings

• In some fields, student contributions are now nine times higher than they were in 1989.
• Between 2006 and 2024, average HECS-HELP debts for people in their 20s more than doubled.
• Many students report going without necessities due to financial constraints.
• An unprecedented proportion of full-time students are now working full-time on top of their studies. 
• The level of Youth Allowance is insufficient to cover basic living costs, leaving many students in poverty.