'Conned' and 'cheated': HECS indexation under fire from Border uni students

But her desire to help others is met with increasing student debt and desperation for a solution.

The indexation of the higher education loans program, known as HECS-HELP, is predicted to rise between 4.2 and 4.8 per cent from June 1, as projected by the Parliamentary Library, commissioned by the Greens.

Miss Fenn is feeling frustrated at the forecasted indexation rate.

"Cost of living is already such a big thing. Even in small towns of Albury-Wodonga, it's still a big issue," she said.

"I think I find that the cost of living with the HECS debt going up makes it a little bit more hard to complete the degree because the higher your HECS debt, obviously, the harder it becomes.

"I know the last couple of years, they've lowered in small increments the earning wage to pay off the HECS debt.

"It makes it quite financially difficult because they're lowering the wage but increasing the HECS debt.

"I think anyone should be able to go out and get a degree and an education without having to worry about the looming debt over their heads."

It will be the second highest HECS-HELP indexation in over 10 years, following a 7.1 per cent increase last year.

Miss Fenn is one of about 3 million Australians with HECS-HELP debt, a loan used to pay for a student's studies if enrolled in a Commonwealth supported place.

The Jindera resident has a HECS debt of $13,000 from her first year of nursing, with two more years of debt to be accumulated.

"Realistically, as much as I can't get my bachelors and as high of a qualification, TAFE probably would have been a cheaper option to still get into that healthcare field without having to have the HECS debt looming over your head," she said.

"Because I think the TAFE course for nursing is quite low still at the moment, and a lot of the healthcare courses with TAFE are free or subsidised.

"I think that that should be applied to the uni degrees as well."

Miss Fenn said unpaid compulsory placements are also adding to the financial strain that is university.

She has a placement this May and has to take the month off from work, despite still having rent, groceries and bills to pay for.

"There are scholarships and that out there, but I don't feel they cover enough of what you need," she said.

"There's no guarantee you will get approved for scholarships and I think it's really hard with placements and that stuff as well, trying to be able to afford that and living."

Imogen Herring, of Wodonga, is in her second year studying a bachelor of psychological science at La Trobe University's Albury-Wodonga campus.

She currently has about $15,000 in HECS debt, but said it will continue to climb, as she will be completing an honours year and a masters degree, which is not government supported.

She said having a large amount of debt from study makes her feel "cheated."

"[I feel] conned, they talk to you all through high school about 'you should go to uni, you should study'," she said.

"You get out of high school, you don't know a whole lot about how HECS debt works and everything like that.

"You don't have any other options, really, you can't just pay your way through uni, it's pretty expensive.

"So your only option is HECS. Then you do that, and then you find out while you've got a HECS and that it's this much interest on top when really you shouldn't be paying interest."

She said she was worried when she heard the news of the speculated indexation rate.

"Pretty horrible, to be honest, and a bit anxious," she said.

"Knowing that I'm going to go through all of these years of study not being able to afford a lot because I'm not working full-time or anything, to then go and work in the field that I've studied to be in and then still be struggling to get by.

"Getting into the housing market as well, with a debt like that that you have to pay off pretty much immediately is pretty, like, I'm never going to be able to get into it, it feels like."

The psychological science student said that now she has started her university degree, she feels as though she may as well continue studying as she will be paying for it either way.

"It just makes you feel trapped, you're stuck in this," she said.

Miss Herring said she would like to see Australia follow in the footsteps of other countries that offer free or heavily subsidised education.

"You read about places like Norway and that they have a free education and things like that," she said.

"You go, I hope one day in the future that Australia can work towards that, because it just seems like they want people to work in all of these places that require you to get a uni degree, but people don't want to do that because they're going to come out of it with a debt that they're going to be paying off for a solid 10, 15 years of their life."

Prime Minister Anthony Albanese is expected to address the HECS-HELP scheme in the coming May budget.

Independent Federal Member for Indi Helen Haines, said a reform to the student loan system will be beneficial.

"The HECS-HELP loan system needs urgent reform to reduce the financial burden on students and university graduates, she said.

"In 2023, more than one million Australians saw their HECS debt grow faster than their repayments because of the indexation system.

"It's not right that in a cost of living crisis, people are finding it harder to get by because they have taken up higher education.

"I have already called on the government to reform the way HECS debts are indexed, so people aren't punished for going to uni.

"The government must take this action before people's debts increase with indexation again on June 1.

"More than 14,000 people in Indi have a HECS debt, and this would make a real difference to the cost of living for them."

Member for Farrer Sussan Ley took aim at the Labor government.

"This is a growing problem because the Albanese government's sloppy economic management is a problem," she said.

"Under our government the average HELP indexation rate over nine years was 1.7 per cent.

"Since Labor came to office it's grown 3.9 per cent in 2022 and 7.1 per cent in 2023, bringing the total increase in loans to 15.7 per cent.

"The Prime Minister has said the government needs to do better here, and on that he is 100 per cent correct."