Monica, who requested her last name remain private, is set to graduate this year, becoming an officially recognized psychologist after dedicating six years to her studies.

While Monica said she was still happy with her career choice, there were many things she would like to go back and tell her teenage self.

Having reached the HECS/HELP borrowing cap of $126,000—which is higher for certain programs like Medicine—Monica was required to pay $33,000 in advance for her master’s program.

In order to afford the fees, Monica took two years off her studies and work full-time.

“I pretty much saved like mad, so I could actually afford to pay for the master’s degree up-front,” she said.

The cost of a university degree can vary wildly depending on the course studied and at which institution.

In line with the policies introduced by the Coalition government in 2021, the costs for certain courses like Arts degrees increased, whereas fees for programs such as teaching and nursing saw reductions.

Department of Education figures released last July show arts, law and commerce students can expect to pay nearly $17,000 a year for their courses, compared to just over $4600 for agriculture or nursing students.

A person graduating from a three-year nursing degree would expect a student loan debt of $14,000.

But a recent graduate of a three-year degree in history would have a HECS debt of $51,000.

Last year, the Albanese Government retrospectively changed the way HECS/HELP debts are indexed in response to a public outcry when indexation rates – tied to inflation – hit 7.1 per cent in July 2023.

Indexation is now based on either the Consumer Price Index (CPI) or Wage Price Index (WPI), whichever is lower.

During his election campaign, Prime Minister Anthony Albanese also committed to slashing the HECS/HELP debts by 20 per cent, with Labor saying it plans to introduce the required legislation as its first bill when parliament resumes later this month.

While the changes were likely to be a big help, Monica – who is now 28 years old – said she could still foresee her huge student debt holding her back.

“I definitely think this will be a major issue for me in the long term, especially in terms of housing,” she said.

While a bank manager had recently assured Monica she would likely still be able to get a home loan because she had been frugal in her spending, it would still be a burden, she said.

“It will create difficulties for me in the sense that, rather than building upon other things in my life that could be really helpful for me, I’ll be paying this off for a very long time.”

Monica said she wanted to warn young people to do their research when looking to enrol in a tertiary education course.

“You need to do your due diligence and really explore and compare all of the different courses that are offered at the different universities. It’s surprising how much variation there can be,” she said.

Finance expert Joel Gibson agreed, saying people shouldn’t be treating student loans as “free money”.

“When you enrol in a degree, you’re effectively taking out a loan for tens of thousands of dollars,” he said.

“Ideally, that loan is what we call ‘good debt’ – it’s funding your personal growth and empowering you to make many times that money back later in life.

“HECS/HELP and other student loans are some of the cheapest and most productive debt you can have, but they’re still debt and they’re not a bottomless well of support.

“Don’t dive in if you’re not sure – take some time off study to make a plan, or start working and see where your passion leads you.

“Do your research and get some advice from knowledgeable family, friends, your super fund, a free financial counsellor – anywhere.”