Community Service to pay off HECS Debt

So a bit of background about the way higher education works in Australia. If you go to uni you can choose to not pay your uni fees upfront and that becomes a HECS (Higher Education Contribution Scheme) debt. Although now I think it's called HELP (Higher Education Loan Program)... someone had a sense of humour to change that. The idea is that if you don't get a job which earns more than $35,000 per year (I think that's the right number), then you never have to pay a cent back to the government. Once you start earning that much each year then your employer will take more tax out of your pay which goes towards your HECS debt. Then at the end of the financial year it won't be so bad to see the bill for your tax.

Soooooo.... the point to this blog post is that in the 2020 Summit that Prime Minister Kevin Rudd had on the weekend, brought up an idea that students should be able to repay their HECS debt by performing Community Service!!! I think this idea is brilliant. I think it will bring the students closer to the community, have a better understanding of what impacts communities and the needs that are out there, because these students are going to be the future, so it's important that we understand these things. Also, I'm sure that each community needs any hand that they can get. It will also work in the favour of those who are lower income earners too. It doesn't sound like it will be a compulsary thing, and that it will just be an option, but I think it's a BRILLIANT option. This is the Sydney Morning Herald Article I read it in: Over to you, Mr Rudd in the second paragraph.

I really think this is great, I was a bit worried to start with because I have no idea on the financial ramifications this would cause the government, but I read in this article at the Herald Sun that it would be only to repay part of their debt, not the whole debt, so I think it is definitely a good option for students. I'm really interested to hear what other people's thoughts are on this idea, I believe it is truely brilliant. Please leave a comment on the pros and cons you think this idea has.

2 comments:

Leigh McCulloch said...

As long as this wouldn't cause financial issues for Australia, I think this is a great idea. It would really encourage the young-folk (p.s. I'm a young-folk) to get involved with the community. And at the same time it will give them an opportunity to exit University without huge debts.

Fiona Banks said...

I think this is a great idea. I believe such a program should be eligible to a variety of future, present and past students. I am a single mother and would love the opportunity to give back to the community and to reduce my hecs debt as they take a long time to pay off.

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