HECS-HELP debt surges hit students

Calls to freeze HECS-HELP indexation have been unsuccessful and the increases will accrue as added student debt from June 1.

ACM spoke to University of Melbourne students about their debt burden and how they planned to pay it off.

Cam Bodum studied audio engineering in his undergraduate degree and now owed the government $70,000 in HECS-HELP debts.

"I'm not looking forward to seeing this indexation added to my debt," he said.

"My only hope is the government waiving the debt otherwise I think I'll probably die before I pay it off," he said.

Mr Bodum said many of his friends were in the same situation and he hoped the "collective debt" would bring pressure on the government.

National Union of Students general secretary Sheldon Gait said young Australians would likely be the most indebted generation in history.

"We know that skyrocketing student debt is causing incredible financial stress and mental health problems for students and young graduates," Mr Gait said.

Lucy, who studies politics at the University of Melbourne, said she was disappointed indexation wasn't frozen.

"It's clear where the government's priorities are and it's not with the students who are going to help our country run in the future," she said.

Oscar, who studies history, said education should be free and it shouldn't be treated as a commodity.

"It should be treated as something we all have a right to," he said.

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Australia Institute research economist Eliza Littleton said the average student would see an increase of $1758.70 on their debt because of indexation this year.

"This year's debts, for lots of people repaying these loans, will go up by more than the value of their repayment," she said.

Mr Gait said anyone earning less than $62,000 would see their debt increase while making repayments.

"Ballooning student loans are pushing young Australians deeper into poverty in the midst of an escalating cost of living crisis," Mr Gait said.

"Students are unhappy," he said.

"It's the first time a lot of students or graduates have looked at their HECS-HELP debt and realised it goes up by that amount every single year," he said.

Ms Littleton said the size of average student debt had almost doubled over the past three years.

"It's increased by 91 per cent," Ms Littleton said.

Over those three years, by comparison, average mortgages had increased by 64 per cent, she said.

"So the growth of HECS-HELP debts is even more dramatic than rising homeowner mortgage debt based on the latest available data," she said.

Ms Littleton said education debts were adding extra barriers for people who wanted to own a home or make other financial choices that required access to income.

"I think it's a disgrace and it suggests we have a really broken system," she said.