Prominent Australian businessman Mark Bouris has described the nation's university system and its student loan scheme as "the greatest con job in the world." Bouris, a millionaire known for his involvement in home loans, argued that accumulating significant student debt prevents young Australians from taking financial risks, such as investing or starting businesses, thus trapping them and hindering their ability to contribute fully to the economy.
Bouris, who holds a Bachelor and Master of Commerce, stated on his podcast that while university was free when he attended, his own sons graduated with substantial debt. He suggested that the current HECS-HELP system, which requires graduates to begin repayments once their income surpasses a certain threshold, effectively penalizes those who earn more by increasing their tax rate to pay off debt.
"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 rate of tax goes up effectively because you're paying off your extra debt," Bouris said.
Course Relevance and Value
Beyond the financial burden, Bouris also criticized the relevance and structure of university courses. He contended that many degrees, particularly in humanities, offer limited job prospects and that students spend too much time studying subjects they may have already covered in high school. He advocated for more condensed, skills-focused programs.
"They're not offering the right courses," Bouris stated. "I mean, like if you want to be a scientist, for argument's sake, you don't need to learn humanities. Most of the stuff you've already learnt year 12 anyway -- you should be able to just jam it all into a 12 month period without all the holidays."
Bouris emphasized that students are taking on financial risk without a guarantee of employment upon graduation. "If you're going to lend me the money 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."
Investment in National Development
Bouris proposed that university education should be free for students pursuing critical professions like medicine, law, or science, viewing it as an investment in Australia's future and a method of "nation building." He differentiated between these essential fields and other courses he deemed "a waste of time."
These criticisms emerge amidst growing concerns about the escalating cost of university education and student debt in Australia. Recent analysis by KPMG indicated that Australians collectively owe $67.6 billion in HECS debt, with the average balance around $28,500. Nearly 2.4 million taxpayers currently hold student debt, with a significant portion concentrated among individuals under 30.
Data shows that the number of Australians carrying HECS debt has declined slightly since 2021-22, as more young people opt for alternatives like fee-free vocational training. The cost of university study has also risen sharply, with a single subject potentially costing over $2,700 and a full year exceeding $22,000. Graduates are required to begin repaying loans when their income reaches $69,258.
