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They make reference to the Australian scheme in the article. Student loans in Aus are indexed by inflation (consumer price index) so they maintain their real va

by shirro 13y ago

They make reference to the Australian scheme in the article. Student loans in Aus are indexed by inflation (consumer price index) so they maintain their real value so as long as wages keep up with inflation it is effectively interest free and a graduate salary really should do better than just keep up. The money is collected via the tax system beyond a typical graduate salary. You hit hard times and drop below the threshold it just accumulates. Just about the next best thing to actual free government education. This is the historical indexation for the Australian scheme http://www.ato.gov.au/Rates/HELP-indexation-rates/?default=&page=1 http://www.ato.gov.au/Rates/HELP-indexation-rates/?default=&... and http://www.ato.gov.au/Rates/HELP-indexation-rates/?default=&page=2#HECS_indexation_rates http://www.ato.gov.au/Rates/HELP-indexation-rates/?default=&...

grecy 13y ago
> The money is collected via the tax system beyond a typical graduate salary. It's worth noting if you are not earning over a certain threshold (currently $51,309), you don't have to pay anything. If you want to go travelling, you simply don't pay anything. If you never earn that much (because, say, you work for a non-profit or are a struggling artist), you are never required pay it back. Also, if you leave Australia, you never have to pay it back. If you do earn over that threshold, you just pay slightly higher income tax in those years [1] If you make a voluntary payment of $500 or more, they take your payment plus another 5% off. [2] I personally have found it to be a phenomenal system, and I've never met anyone in Australia that didn't go to University because they couldn't afford it. (We also get paid a "living wage" to go to University, of around $400 every two weeks, depending on circumstances. [3] ) [1] http://studyassist.gov.au/sites/studyassist/payingbackmyloan/loan-repayment#HowMuchWillMyRepaymentsBe http://studyassist.gov.au/sites/studyassist/payingbackmyloan... [2] http://studyassist.gov.au/sites/studyassist/payingbackmyloan/loan-repayment#CanIPayOffMyDebtSooner http://studyassist.gov.au/sites/studyassist/payingbackmyloan... [3] http://www.humanservices.gov.au/customer/services/centrelink/youth-allowance http://www.humanservices.gov.au/customer/services/centrelink...
- shirro 13y ago
  If you can make the entrance requirements everyone has a chance to study without the penalty of crippling debt, most of us reach legal drinking age during our first year of study and our campuses rarely get shot up by gun toting crazies. Freedom is a relative concept I guess.
- bjeanes 13y ago
  Australia's system is amazing. I would be in crippling debt if I had studied in many other countries but instead I am slowly paying back the debt and barely noticing the hit.
  - verelo 13y ago
    I'm so glad this is getting some attention. It is an amazing system and while a bunch of issues like people leaving etc are pointed out, for the most part "what goes around comes around" but in a very positive way for the nation. People feeling free to travel and experiment, while being educated, just means eventually when they return home they bring a lot back with them. You wonder why a nation in the middle of nowhere can thrive? Well yes there is a mining boom, but also the country is well equip enough to make the most of it.

by shirro 13y ago

grecy 13y ago

> The money is collected via the tax system beyond a typical graduate salary. It's worth noting if you are not earning over a certain threshold (currently $51,309), you don't have to pay anything. If you want to go travelling, you simply don't pay anything. If you never earn that much (because, say, you work for a non-profit or are a struggling artist), you are never required pay it back. Also, if you leave Australia, you never have to pay it back. If you do earn over that threshold, you just pay slightly higher income tax in those years [1] If you make a voluntary payment of $500 or more, they take your payment plus another 5% off. [2] I personally have found it to be a phenomenal system, and I've never met anyone in Australia that didn't go to University because they couldn't afford it. (We also get paid a "living wage" to go to University, of around $400 every two weeks, depending on circumstances. [3] ) [1] http://studyassist.gov.au/sites/studyassist/payingbackmyloan/loan-repayment#HowMuchWillMyRepaymentsBe http://studyassist.gov.au/sites/studyassist/payingbackmyloan... [2] http://studyassist.gov.au/sites/studyassist/payingbackmyloan/loan-repayment#CanIPayOffMyDebtSooner http://studyassist.gov.au/sites/studyassist/payingbackmyloan... [3] http://www.humanservices.gov.au/customer/services/centrelink/youth-allowance http://www.humanservices.gov.au/customer/services/centrelink...

shirro 13y ago
If you can make the entrance requirements everyone has a chance to study without the penalty of crippling debt, most of us reach legal drinking age during our first year of study and our campuses rarely get shot up by gun toting crazies. Freedom is a relative concept I guess.
bjeanes 13y ago
Australia's system is amazing. I would be in crippling debt if I had studied in many other countries but instead I am slowly paying back the debt and barely noticing the hit.
- verelo 13y ago
  I'm so glad this is getting some attention. It is an amazing system and while a bunch of issues like people leaving etc are pointed out, for the most part "what goes around comes around" but in a very positive way for the nation. People feeling free to travel and experiment, while being educated, just means eventually when they return home they bring a lot back with them. You wonder why a nation in the middle of nowhere can thrive? Well yes there is a mining boom, but also the country is well equip enough to make the most of it.