Prominent Australian businessman Mark Bouris has delivered a sharp critique of the nation’s university sector, describing the student loan system as “the greatest con job in the world”.
Bouris, the home loans entrepreneur whose wealth is estimated at more than $200million, earned a Bachelor of Commerce and a Master of Commerce in 1979. But despite his own academic background, he argued that many university degrees today offer poor value and leave students carrying debt for qualifications he believes can be a “waste of time”.
“When I went to university, it was free. Now, my sons went to university, and they all come out of debt,” Bouris said on a recent episode of his podcast.
He said graduates were, in some cases, being financially boxed in just as their careers began to gather momentum. “And to some extent, they’re trapped, and they can’t actually do anything because when they start to get a good job, they got to start paying it back really fast, so that actual rate of tax goes up effectively because you’re paying off your extra debt,” he said.
Bouris also questioned whether Australian universities were properly preparing students for the workforce, saying: “And also I think universities, to be honest with you, they’re not offering the right courses.”
The businessman said young Australians should not be forced to spend years studying material that has little connection to the career they want to pursue.
“I mean, like if you want to be a scientist, for argument’s sake, you don’t need to learn humanities,” he said.
“Most of the stuff you’ve already learnt year 12 anyway.”
Prominent Australian businessman Mark Bouris (pictured) has shared his scathing critique of the university system
Students are being forced to take out huge loans to pay for their degrees.
‘You should be able to just jam it all into a 12 month period without all the holidays.’
Mr Bouris said students were being asked to shoulder the financial risk of getting a degree without any guarantee that the qualification would result in employment.
‘It’s the greatest con job in the world.
‘If you’re going to lend me the money and you want me to pay it and you want me to pay you back, then you’ve got to guarantee me a job.
‘You don’t get a job, but you still owe the money the moment you get a job, you start paying it back – so like it’s a two-edged sword. To me it’s a con.’
Mr Bouris said university should be free for students studying important professions, arguing it would be an investment in Australia’s future.
‘We should be encouraging young people to go to university,’ he said.
‘This is how you build nations. This is nation building.’
KPMG analysis released last month found Australians collectively owed $67.6billion in HECS debt
He said that not all degrees should be offered for free.
‘If you want to be a doctor, maybe, or a lawyer, perhaps some of those things, or perhaps a scientist.
‘A lot of the courses are a bit of a waste of time.’
The comments come amid growing concern over the soaring cost of university degrees and the burden of student debt.
KPMG analysis released last month found Australians collectively owed $67.6billion in HECS debt, with borrowers in Sydney and Melbourne accounting for the largest share.
Almost 2.4 million taxpayers now have student debt, with the average balance sitting at $28,500 and many taking a decade or more to pay it off.
About half of all HECS debt is held by Australians under the age of 30.
While university remains the most common pathway into higher education, the number of Australians carrying HECS debt has fallen 3.5 per cent since 2021-22, as more young people turn to alternatives such as fee-free TAFE courses.
The cost of a university education has also climbed dramatically.
A semester of study once left students with debts of just a few thousand dollars. Today, a single subject can cost as much as $2,714, while a full year of study can exceed $22,000.
Graduates are required to start repaying their student loans once their income exceeds $69,258, with repayments now calculated only on earnings above that threshold.
