One in four humanities students in Australia to take more than 25 years to pay off student loans, treasury finds
Summary
New data from Australia’s Treasury shows that many humanities and creative arts students will take over 25 years to pay off their student loans due to a government fee scheme started in 2021. The scheme raised fees for humanities degrees to encourage students to study areas like science and nursing but has led to higher debts for arts graduates, with many struggling to repay.Key Facts
- One in four humanities students will take more than 25 years to repay their student loans.
- Nearly two-thirds of humanities and creative arts students will carry debts over $50,000.
- Median repayment time for creative arts graduates increased from 14 to 17 years since the new fee scheme began.
- The scheme aims to discourage students from studying humanities and encourage science, nursing, education, and IT degrees.
- Since the scheme started, the number of graduates with debts under $20,000 doubled, while those with debts over $50,000 rose by 70%.
- Students in lower-earning fields have worse repayment prospects, and the government recovers only about half of the increased debt.
- Education Minister Jason Clare called the scheme an “abject failure” and is working on reforms to the university sector.
- A new body, the Australian Tertiary Education Commission (Atec), will recommend changes but is not required to focus on student fees or this scheme.
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