New analysis reveals electorates where HECS indexation will have the greatest impact

Graduates in Anthony Albanese’s inner-western Sydney electorate are facing some of the highest student debts in the country, with new analysis revealing that a Greens-held seat has topped the charts. Data from the Parliamentary Library, commissioned by the Greens, shows that the average student debt in Grayndler is $32,135, with a $1285 increase set to take effect this weekend due to the 4.7 per cent indexation rate.

Grayndler is located near two major universities, the University of Sydney and University of Technology Sydney, and it is estimated that almost 25,000 graduates in the seat have accumulated over $800 million in debt. The Greens have been advocating for the government to eliminate student debt and make university and TAFE education free, criticizing the Prime Minister for burdening constituents with excessive debts.

Interestingly, the research commissioned by the Greens also revealed that Greens leader Adam Bandt’s electorate of Melbourne has the highest average student debt in the country at $34,475, with a $1620 debt increase on the horizon. The 38,115 individuals with student debt in Melbourne have a combined balance of more than $1.3 billion.

Comparatively, student debts in other seats such as Sydney, Higgins, Wills, and Macnamarra are significantly lower than the national average debt of $26,494. The Greens are focusing on these seats in anticipation of the upcoming election.

Despite recent changes to the indexation calculation to prevent a repeat of last year’s substantial 7.1 per cent increase in debts, Greens education spokeswoman Mehreen Faruqi criticized the government for neglecting students. She argued that Labor’s proposed solution to the student debt crisis would still result in an 11.5 per cent increase in debts during their first term in government.

In response to the growing concerns over student debt, the federal government announced measures to reduce student debts by approximately $3 billion and reverse last year’s 7.1 per cent indexation hike. The new rules will tie the indexation rate to the lower of the consumer price index or wage price index to ensure that student debts do not outpace wage growth in the future.

Overall, the issue of student debt remains a contentious topic, with political parties offering differing solutions to alleviate the financial burden on graduates.