Are our brains draining our wallets?
Care to discuss?
Are our brains draining our wallets?
Care to discuss?
Well, in my day Uni was free, except for Compulsory Union fees. My son is just about to finish his degree and we have paid his HECS. He started before the Unis were able to charge the extra 25%.
What the Unis need to understand is that the quality of the service they provide is not worth the money we pay for HECS. Let alone those who have to pay the extra 25%.
I remain spectacularly unimpressed with the standard of most of the lecturers in his course. They need to work in the real world for a while, yet they stand up having never worked in the industry they are supposed to the experts in - they have lectured all their life - never left school really!
On my son's very first day at Uni for his first 90 minute lecture, the lecturer arrived 10 minutes late, talked for 15 minutes then said she had a headache and left again - great start!
In our business we contract him for specific corporate tasks for our clients. He commented on one of his presentations he did for a Uni subject that if he had performed the same way when acting as a consultant for us, we might not use him again. However, he received a high distinction from the Uni!
I dont actually mind people having the HECS debt, I do mind that we aren't getting the quality we should - value for money!
Students struggle with $13bn debt
MORE than a million Australians have racked up $13 billion in student debt. Of this, $2.5 billion is not expected to be repaid.
Average individual debt has risen from $4787 in 1996 to about $10,000.
Student debt under the Higher Education Loan Program has soared from $4 billion in 1996 to a record $13.2 billion.
Queensland students' bill is about $2.15 billion.
Figures reveal 1.18 million Australians have student debts with 1084 owing more than $50,000.
University of Queensland physiotherapy student Ryan Tiernan is expecting his education to cost him almost $16,000.
The 23-year-old estimates he has already racked up a $5000 HECS bill for a partly finished human movements-business degree and one year of an arts degree.
Two years ago he enrolled in a four-year bachelor of physiotherapy and expects his total bill to sky rocket by a further $11,000 when he is finished studying.
"My first year at university was about finding out what I wanted to do, but that was bad because it meant that I was accumulating all this debt that I'll have to pay back later," he said.
The resident of Taringa in Brisbane said he was concerned about the impending arrears and how it would affect his future.
"I'm pretty worried about it because when you finish uni you want to start making a life for yourself and buying a house and things like that, but it's hard because you've got this massive debt hanging over your head," he said.
"It's hard to get ahead when you start from behind."
Last year, course fees jumped by 25 per cent with students being slugged up to $31,000 more for their degrees than the 1996 costs.
Amid concerns over rising debts, the Federal Opposition is planning debt relief for students as part of a major overhaul of its higher education policy.
Labor's Deputy Leader and education spokeswoman Jenny Macklin said the HECS debt was rising "very, very fast".
Labor has promised to scrap full-fee degrees for undergraduates in public universities. "It's not right for Australian students to jump the queue to buy places at universities," Ms Macklin said.
There is no real interest payment on unpaid HECS debt but it is subject to the consumer price index, meaning debt is growing by about 3 per cent a year.
Your son is a very lucky man to have his HECS debt paid for by his parents, most students have to just wear this debt and don't have the luxury of wealthy parents coming to the rescue.Originally Posted by Prospector
Yes its pretty normal for lectures to start late, or not at all.
I used to have that attitude myself.I remain spectacularly unimpressed with the standard of most of the lecturers in his course. They need to work in the real world for a while, yet they stand up having never worked in the industry they are supposed to the experts in - they have lectured all their life - never left school really!
Having just finished Adelaide Uni's advanced Management programme 6 modules at a $5000 investment.
My initial view was what can a heap of academics teach me---having been in business 27 yrs.
The answer is Heaps!!
Kris is Doing his doctorate at the same Uni (Son) and already approached by 2 prospective employers.
I found the standard of lecturer---all of whom were hired from private consultancy practices--- to be exceptional.
Whats wrong with paying for your education----Students may just value it!
No I didnt and wont pay for Kris's HECS debt.(My choice).
The sense of achievement I see from his efforts (He recieved First class honors in his masters---thus qualifying for a scholarship and top up from the State), which possibly may not have been achieved had he not had to self finance. He's in Melbourne today presenting a reasearch paper on photonics to a group of academics---University paid.
Mind you the car, petrol and living expenses came from Dad during his Masters year.
I'll have a hecs debt of over 50k b4 i graduate and I don't really see a problem with paying for part of my education, at least we haven't reached the levels of other countries like the US where a year at an Ivy leauge school would be more than I am paying for my entire education.
But $50K is a lot of money, just image how much wealth you could have built up out of that. There is a house deposit gone, a savings account gone, a better super account balance gone.
I think you may want to re-consider your thoughts on this.
You will only realise how much debt you are in, once you have left the 4 walls of Uni and your wages are garnished for the next 30 years.
You will be re-paying as much as 8% of your wages, possibly $150 per week, thats a serious amount of cash.
I always remember watching an episode of Oprah one day. She had an feature on debt levels in America.
What became clear to me was the fact that you must total all your debts and then add all your assets to find out your total wealth.
ITS THE TOTAL WEALTH THAT COUNTS!
Do you have at least $50k in assests?
If not you are going to be in debt for a very long time b4 you even break even.
I assume you may even have a credit card, and a personal loan too, so add them to you 50K debt too.
Also note that that $50k you have on HECS debt will most likely cost you that again, over the lifetime of the loan, so effectively you are paying for $100K for your degree
Well it is now but in even 10 yrs time that $50K will be like 30K now.But $50K is a lot of money, just image how much wealth you could have built up out of that.
In 20 yrs it will all be gone,wages will be at least 25-50% more in 20 yrs.(Thats a guess).
On the other side of the coin.
Take the long term earning potential ---say 40 yrs---of someone with a 50K education and the majority without one.
Lets say $50k/yr V $80k/yr. Just on $30K a year over 40 yrs thats $1.2mill.
It will of course end up being much more than that.
Not always...plenty of graduates end up on the dole, or in low paid jobs and their mates who never went to uni are earning more.Originally Posted by tech/a
Even the ones that do secure high paid jobs end up losing over 1/2 of their salary in tax (45% tax rate), then add on 8% repayments that makes their tax rate at 53%
Don't forget to add on the hidden costs of uni:
* The text books
* The Union fees
* Lost wages for between 3-8 years (that alone could be worth $300,000+)
True.Not always...plenty of graduates end up on the dole, or in low paid jobs and their mates who never went to uni are earning more.
But then the alternative of Public funded education leaves those who pay tax with the costs borne by those who---for whatever reason---dont do any better from a Uni education.
Any other alternatives?
I assume that is 25-50% more in real terms rather than nominal? Quite a few people with big mortgages etc seem to be counting on 50 - 100% nominal wage inflation pretty soon...Originally Posted by tech/a
Yes not wise.This shows lack of control of their affairs.Originally Posted by Smurf1976
I'm 19 and have about $10000 of hecs racked up so far.
Oh by the way, it's 'HELP' debt now. If they change the name of it evey year nobody will notice they are being shafted, right?
That is what the younger generations are going to need to pay off their HECS debts is a lot of HELP....
Glad I have paid mine off.....this is the first time in 10 years I am now debt free, and I sleep so well at night.
We could always go back to the days of yester-year where life was simple and we had free education and lower tax rates
With increasing population this cant happen,unless your willing to have inflation added to the mix.HEX was introduced to deminish costs and government has bought in initiatives like super,health cover to help with increasing costs of government.
There will always be a trade off,and Im sure costs will only grow for the consumer as years go by---they have in the USA.
Never perfect but could be argued as responsible government/business management..