policy & reform campusreview . com . au
More debt , lower pay
Gender gap persists in earnings , HECS-HELP debts and study areas .
By Wade Zaglas
New research has concluded that
university-educated females in
Australia have accrued a bigger HECS-HELP debt and also earn less than their male counterparts .
The findings appear in Futurity Investment Group ’ s Impact of University Debt Report , which surveyed more than 1000 Australians who attended university .
EARNINGS The report found stark differences in the earnings of university-educated individuals based on their sex and age . For instance , 39 per cent of females earn less than $ 40,000 , while only 27 per cent of males recorded a similar salary bracket . Conversely , the report also found more than half ( 57 per cent ) of university-educated males earn in excess of $ 60,000 per year , compared to 42 per cent of females .
Age also played a key factor in determining earnings , the report found . Roughly one in two ( 53 per cent ) of university-educated individuals aged 30 – 39 earn more than $ 60,000 per annum . In contrast , 41 per cent of 22 – 29-year-old Australians earn less than $ 40,000 .
HECS-HELP DEBT The Impact of University Debt Report also found substantial differences between the HECS-HELP loans of males and females . For example , one in four ( 24 per cent ) of the male respondents finished their university studies with a HECS-HELP debt between
$ 20,000 and $ 50,000 ; in contrast , close to one in three of the female respondents ( 32 per cent ) had accrued a similar amount of debt .
The report also highlighted that very few Australians are paying fees up front and instead relying on HECS-HELP loans . An overwhelming 90 per cent of universityeducated individuals in their twenties have a HECS-HELP debt , with that figure dropping to 72 per cent in their 30s .
Concerningly , almost half ( 48 per cent ) of individuals surveyed who were in their 40s still had a HECS-HELP debt , with “ the average time to repay HECS-HELP debt ... now approaching 10 years and ... trending up ”.
HECS- HELP debt has also had some impact on home ownership , while 41 per cent of respondents reported their HECS-HELP debt has impacted their ability to purchase a car . The amount individuals earned also had a significant impact on their ability to make voluntary payments , which can help pay off HECS-HELP loans over a much shorter time period .
For instance , only a third ( 31 per cent ) of respondents earning less than $ 40,000 have made voluntary repayments towards their HECS-HELP loan . In contrast , over half ( 57 per cent ) of individuals earning more than $ 60,000 have made voluntary repayments .
OTHER KEY FINDINGS
• Thirty-five per cent of employed respondents are not employed in their field of study , while a higher percentage of 40-49-year-olds ( 42 per cent ) are also working outside of their study area .
• Close to half ( 44 per cent ) of respondents “ are negative or neutral about the value of their university education because of HECS-HELP debt ”.
• The ‘ gendering ’ of particular professions continues to be significant , with 61 per cent of females studying education , with another 66 per cent studying health . On the other hand , 81 per cent of respondents studying Information Technology are male and 79 per cent studying engineering are also male .
METHODOLOGY Of the more than 1000 survey responses forming the report , individuals were all Australian citizens and had either completed a university degree , were currently studying a university degree , had deferred their university studies or withdrawn from a university course . Fiftyone per cent of respondents were females and 49 per cent were males .
Survey responses were received from all states and territories , with NSW providing the highest percentage ( 30 per cent ), closely followed by Victoria ( 29 per cent ). Fifty-seven per cent of respondents were employed full time , 29 per cent were employed on a part-time basis , and 15 per cent were unemployed .
Futurity CEO Ross Higgins said the Impact of University Debt Report shines a light on how loans to fund a university education “ can have long lasting effects ”.
“ Debt acquired at university should not negatively impact important financial and social objectives , including purchasing a home , a new car , starting a business or later-in-life career changes ,” he said .
“ The research also highlighted the growing gender pay gap , which is often exacerbated when females take career breaks to have children , raise a family , then return to work in a part-time role .
“ It ’ s unacceptable they are earning less and leave university with more HECS-HELP debt than their male contemporaries .”
Higgins said that , despite the obvious gender imbalances , the survey found that the majority of Australians who attend university are “ positive or neutral about the value of their university education despite their HECS-HELP debt and the financial and social impacts ”.
“ However , with the cost of a university education exceeding $ 50,000 in many instances , it ’ s essential people considering a tertiary education understand debt acquired at university can carry financial and social burdens later in life ,” he said . ■
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