Sydney’s $14 billion HELP student loan burden

The Weight of Student Debt: A Growing Concern for Young Australians

Student debt has become a significant source of financial stress for many young Australians, particularly women, who now make up the majority of those carrying HELP debts. For primary school teacher Maddy Foster, her student debt is a constant presence in her life, always lurking in the back of her mind. She recently took on a loan to buy a home unit, and the added burden of her HELP debt has only intensified her financial anxieties. “With indexation on top of my debt every year, it scares me to look at it, really. It’s like, ‘how much do I owe now?’” she said. Foster, who grew up in western Sydney, knows firsthand the pressure of juggling a career, living expenses, and the weight of debt. “I feel like I’m just swimming in debt at this point and I don’t know when I won’t be swimming in debt, to be honest,” she admitted. Despite her love for her career, the combination of rising living costs and the compounding interest on her student debt has left her doubting her ability to pay it off as quickly as she initially planned.

The Gender Gap in Student Debt

The issue of student debt is not just a personal struggle but also a systemic problem that disproportionately affects women. Over the past two decades, females have been pursuing higher education in larger numbers than males, leading to a significant gender imbalance in student debt. Nationally, 62% of those aged 30 to 39 years with a HELP debt are women, according to federal government data. This disparity highlights the broader economic challenges faced by women, particularly in a society where they often bear a greater share of caregiving responsibilities and may face wage gaps in the workforce. For women like Foster, the burden of student debt can feel especially overwhelming, as they navigate the dual pressures of career and financial stability.

The Myth of Student Debt as a Privilege of the Wealthy

There is a common misconception that policies aimed at reducing student debt primarily benefit wealthy professionals. However, this narrative is far from accurate. In reality, many of those carrying HELP debts are everyday workers, including teachers, nurses, and carers, who are essential to the functioning of society. Adam Leto, the chief executive of the Western Sydney Leadership Dialogue, emphasized this point. “Some of the commentary saying this policy is just for the city’s rich kids, I think is a little out of touch,” he said. Leto pointed out that the distribution of student debt across Sydney reflects the diversity of the workforce. For instance, in Greater Western Sydney, the number of people gaining a bachelor’s degree increased by 29% between 2016 and 2021, with the largest growth seen in the healthcare and social assistance sector. Areas like Blacktown, Parramatta, and the Hills Shire have also seen significant increases in the number of adults with degrees. “I wouldn’t call carers, nurses, and teachers wealthy professionals,” Leto said, highlighting the importance of supporting these individuals through policies that ease their financial burdens.

The Rising Tide of Educational Aspiration in Western Sydney

The increasing number of young people in western Sydney pursuing higher education reflects a broader trend of aspiration and mobility in the region. Over the past five years, the number of people gaining a bachelor’s degree in Greater Western Sydney jumped by 29%, with the biggest increase in the healthcare and social assistance sector. Education was the third-largest sector for tertiary-educated workers during this period. This surge in educational attainment is a testament to the ambition of young people in the region, who are eager to acquire the skills and qualifications needed to compete in the modern workforce. However, the financial burden of student debt often undermines their ability to fully realize their potential. As Leto noted, “The young generation of western Sydney are increasingly educated, mobile, and aspirational, and any policy which has the potential to open up more opportunities for higher learning and skills development should be encouraged.”

The Impact of Student Debt on Career Choices and Financial Stability

For many young Australians, the prospect of accumulating student debt can be a significant deterrent to pursuing higher education. Foster knows people who have decided against doing a degree because they were concerned about the financial implications. “They just thought it wasn’t worth it in the end, which is pretty sad,” she said. This reluctance to take on debt can have long-term consequences, as it may limit opportunities for career advancement and personal growth. For those who do pursue higher education, the burden of student debt can linger for years, affecting their ability to achieve financial stability. Foster’s experience is a prime example of this. Despite her passion for teaching, she is struggling to make ends meet due to the combination of living costs and debt repayments. “It is frustrating just thinking about it. I love this career … but with the cost of living,