Sian Lewis graduated in 2022 with two degrees: a Bachelor of Arts and a post-graduate diploma in library and information services.
She also took home a HECS loan debt that now amounts to $40,000.
Ms Lewis said that watching her debt grow as she had begun to pay it off, and even before then, had been incredibly stressful and something she was unprepared for.
“When I was enrolling, I was told, ‘HECS debt — you don’t have to think about it right now. You pay it off later in life,” she said.
“Now that I’m at that later point, I feel like I’ll never be able to pay it off.”
Since graduating, Ms Lewis’ debt has grown from an initial $35,000 to the $40,000 she is grappling with today.
“Because I was juggling casual and part-time jobs and still not earning enough, (because of) indexation, it went up a good $5000 before I got a full-time job and was able to start paying it off,” she said.
Ms Lewis is now a qualified librarian who works at Melbourne University.
On Sunday, May 5, Federal Education Minister Jason Clare announced a proposed cap on HECS loan indexation rates.
If passed, the rates will be matched to either the Consumer Price Index or Wage Price Index based on whichever is lowest.
This change will keep the growth rate of student debt lower, avoiding spikes like the 7.1 per cent leap in 2023, though it won’t stop growth entirely.
While the change will come as a relief amid the current cost-of-living crisis, is it enough?
Under the proposed changes, Ms Lewis’ $5000 growth may be slowed, but for many, including Ms Lewis, the stress comes from more than just a continually increasing debt.
Ms Lewis said her HECS debt impacted her financial opportunities, such as applying for a home loan.
“I’m thinking about buying a home, and that’s stressful enough with the current state of the housing market,” Ms Lewis said.
“I’ve done the home loan calculator, and a lot of the time, I’ve noticed the HECS debt skews it, and my borrowing power is reduced.”
Lenders consider HECS debt as an expense that could affect the applicant’s ability to meet repayments.
Therefore, the more significant the debt and the larger the repayment amount, the more borrowing power is reduced.
For Ms Lewis, this could mean a tens of thousands of dollars difference in borrowing power.
“(It would be good) if there is some kind of adjustment to how indexation works so that people are able to pay it off sooner,” Ms Lewis said.
She also said she hoped for a bigger change.
“The dream is that it’s wiped, but that feels ambitious to ask for,” Ms Lewis said.
“Working in a university, I believe education should be free.
“It should be (considered) a fundamental human right. Everyone should have access to it, and the way that it’s currently working is not sustainable for individual people.”
Ms Lewis said that she strongly believed university was something everybody should have equal opportunity to experience without having to take on a large debt.
“The experience is just as important as the education,” she said.
She said she believed everybody should have equal opportunity to have that experience.
“I wouldn’t be where I am in my life if I haven’t studied,” she said.
“I really value those years of my life, and it’s as much an experience of growing up and maturing and finding lifelong friends — as much as for the piece of paper at the end.
“I just wish that the situation was different and it didn’t affect my financial prospects.”
The treasurer will deliver the federal budget speech on Tuesday, May 14.