Students are being hit by a double squeeze, with new analysis showing the cost of living is rising faster than students can keep up, while the government continues to charge some of the highest university fees in Australia's history.
Since the Job-ready Graduates Package was introduced in 2021, the cost of being a student has increased dramatically. Students are paying 40 per cent more in rent, 27 per cent more for groceries, 39 per cent more for utilities and 43 per cent more for fuel.
Overall, the cost of maintaining a basic student standard of living has risen by 29 per cent - faster than economy-wide inflation (24 per cent) - while student spending has increased by just 21 per cent.
Despite spending more and reprioritising their budgets towards essentials such as rent, students have been unable to keep pace with the rising cost of maintaining the standard of living they had in 2021.
In other words, students are being squeezed from every direction. They're cutting back simply to make ends meet and still aren't keeping pace with rising living costs.
Universities Australia Chief Executive Officer Luke Sheehy said the analysis showed students were being forced to absorb higher living costs while also taking on larger debts for their degrees.
"Students are paying more for rent, more for groceries, more for electricity and more for fuel," Mr Sheehy said.
"At the same time, the government continues to punish students with some of the highest university fees in Australia's history.
"That's the double squeeze students are facing. They are paying more to live and more to study, yet they're still unable to keep pace with the rising cost of living.
"Five years after Job-ready Graduates was introduced, the highest student contributions are around 20 per cent higher. Students in some disciplines are now paying up to $17,399 a year and more than $52,000 for a three-year degree.
"Students are already cutting back simply to make ends meet. They shouldn't also be carrying some of the highest university fees in Australia's history."
The analysis by Universities Australia comes as the Albanese government invests around $16 billion to reduce student debt.
"That relief is welcome and important, but one of the biggest drivers of excessive student debt remains in place," Mr Sheehy said.
"If student debt is a problem worth spending billions of dollars to reduce, then Job-ready Graduates is a problem worth fixing.
"Reducing HELP balances helps today's graduates. Replacing Job-ready Graduates would stop tomorrow's students from accumulating unnecessarily large debts in the first place.
"Australia needs more people gaining the skills and qualifications required for a modern economy.
"That means removing barriers to higher education, not asking students to take on more than $52,000 in debt.
"Job-ready Graduates was introduced by one government and has been retained by another. Five years on, it's a legacy of both governments - and students are still paying the price. It's time for it to go."
