Booking up debt is a concern for students
THE cost of courses and textbooks is putting university students under financial strain.
New analysis by textbook rental company Zookal revealed 80 per cent of students pay for their degree after they’ve completed their study and begin earning a decent wage.
The Higher Education Loan Program allows students to defer their study costs but the research found about 10 per cent of students have the luxury of their parents paying their fees for them.
Many students are also concerned about their courserelated fees and textbook costs (22 per cent) while 21 per cent are worried about how they will pay back the debt they have accumulated.
Tribeca Financial chief executive officer Ryan Watson played down the issue though, saying these debts aren’t something students should lose sleep over.
“Given the option, all university students should take on a HELP debt as opposed to paying their university fees upfront,’’ he said.
“Given HELP has an interest rate right on the Consumer Price Index (now at 1.5 per cent) it should be the last debt that a person should focus on.
“Any other debt, i.e. personal loans, credit cards and even a mortgage should be paid off first before people look to voluntarily pay off their HELP debt.”
Student Sarah Sultan, 19, is studying a business degree at the University of Western Sydney and said she has deferred her study costs while still living at home with her parents to keep her expenses low.
“Finding a job after studying at uni is a big stress,’’ she said.
Zookal founder Ahmed Haider said to ease studying costs students can rent textbooks for 50 to 70 per cent of the cost of a full-price textbook.
But as for course costs, he said many students don’t consider this until after they graduate.
For those carrying HELP debts, once they enter the workforce and earn more than $54,869, 4 per cent of their wage is contributed to paying back their debts.
This percentage increases in increments as high as 8 per cent for those earning $101,900 and above.