Student debt could rise to $120,000, HECS architect warns

The architect of the student loan scheme, Bruce Chapman warns that graduates could be hit with $120,000-plus debt - three times the amount of a deregulated fee system - once completing their studies according to a report in the 

The Budget will lift HECS Debt from the current consumer price index based rate up to a steep 6%. Chapman, from the Crawford School of Public Policy at ANU warned that increasing the interest rate on student debt will have "radical" implications for domestic students. "In the past changes to HECS didn't deter students, but now that there will be a real rate of interest on the debt we are in unchartered waters."

The government will also reduce contributions to course fees (from January 2016) and universities will start to set their own fees.

Chapman said, "it is likely most universities will increase tuition to international student fee levels, which are currently about three times higher than domestic fees. They mean that we can expect to see fees increase both significantly and rapidly from 2016, but how fast and by how much we just can’t know."

Savvy students, all is not lost! Mozo has heaps of great student savings accounts here that will help you save a bunch of cash, so you can pay off your student debt earlier.