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0 pointsNamTaf12y ago0 comments

I don't, but I'd love to see some if anyone has any. The problem is that because the only interest on the loan is CPI, the HECS system is essentially a fixed pool of money that is temporary loaned to students then paid back, real-dollar for real-dollar. By not paying it back, it's essentially 1 student's volume of study that is lost out of that pool.

I don't know how significant that 'leak rate' is though, so I can't put a figure on whether it's stressing the funds or not.

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AlexDanger12y ago

The only reason I suspect its not a big problem is neither political party seem to be whining about it.

Perhaps the boom economy over the last few years has hidden the problem. Graduates from IT/Engineering/Geology had a very good chance of skyrocketing into a top income bracket after only 1-2 years on the job. In terms of NPV this accelerated repayment makes the pool of money larger. And vice versa in a slow economy. I'm quite certain the previous generation didn't see their income climb so fast relative to their years of experience.

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