SENATOR KIM CARR

SHADOW MINISTER FOR HIGHER EDUCATION,

RESEARCH, INNOVATION AND INDUSTRY
SENATOR FOR VICTORIA
MEDIA RELEASE
MILLIONS OF YOUNG AUSTRALIANS TO FACE CRIPPLING HECS DEBTS
Not only will future generations of Australians face higher debts thanks to the Abbott
Governments Budget of broken promises but existing students and graduates will be
hit as well.
University students and graduates with existing !"#$!%& debts ' currently about
(.) million people ' will be hit with thousands of dollars extra in interest on their
loans after )*(+.
,-any young people and their families will be saddled with unmanageable debts./
#enator "arr said.
,#ome university degrees could cost up to 0(**.***10)**.*** over time as a result
of the Abbott Governments deregulation agenda.
,2m deeply concerned that the cost of a degree. the debt burden will become
prohibitive for young Australians from low1 and middle1income families./
Before the election. the Abbott Government promised3
The Coalition has no plans to increase university fees.
CHRISTOPHER PYNE - MEDIA RELEASE 26 AUGUST
2012
Both existing and new !"#$!%& debts will feel the impact of the Abbott
Governments changes to interest rate indexation from "&2 of ) per cent to the
Government Bond rate. capped at + per cent.
#hadow igher !ducation -inister 4im "arr said that at compound Government
Bond rates those !"#$!%& debts would grow rapidly.
"urrently there are 56*.*** undergraduate students and )6*.*** postgraduate
students who will face future !"#$!%& liabilities.
7he current Government Bond rate of 8.9 per cent is historically very low. and more
typically stands at 6 to + per cent :see table below;.
,<ice1"hancellors from University of 7echnology #ydney. the University of "anberra.
University of Newcastle and "harles #turt University have spoken of the crippling
effects of massive increases in the cost of a degree.
,&rofessor Bruce "hapman. the architect of !"#. has spoken of the potential for
0()*.*** degrees in this country.
,=ther experts such as Geoff #harrock of the % -artin 2nstitute at the University of
-elbourne have talked of degrees costing up to 0)**.***.
,>ere talking about massive amounts of debt ' the current outstanding !"#$!%&
debt was estimated as 0)+ billion in the )*(81(? Budget papers.
,By the end of the current @orward !stimates. that is. over the next four years. the
debt was proAected to grow to 0?) billion ' and thats without factoring in the Abbott
Government changes.
,Bou dont have to be !instein to understand how compound interest on these sums
will run into the millions ' all of which will be shunted on to students./
#enator "arr said none of these changes had been put to the Australian public
before the election.
,2n fact. the Government promised there would be no changes to higher education./
#enator "arr said.
"We will ensure the continuation of the current arrangements of university
funding."
REAL SOLUTIONS, LIBERAL PARTY POLICY DOCUMENT- CHAPTER 17,
PAGE 0 ! 1 27 "ANUARY 201#

,#tudents and graduates have every right to be angry about these proposals./
#enator "arr said.
,%abor will oppose the Abbott Governments ineCuitable changes to higher education
and fight to maintain the current !"#$!%& system. widely acknowledged as one
of the finest in the world./

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SATURDAY, 17 MAY 201