01.Increased costs and diminishing prospects
Budget papers have forecast that 30% of graduates finishing a degree in 2016-17 will be out of work, with only 70% of higher education graduates expected to have a full-time job within four months of finishing their degree.
Analyses reported in the Sydney Morning Herald find that, having endured the highest costs of deregulated fees and higher interest on student loans, graduates now face reduced employment opportunities due to a softening labour market, with an expected decrease in graduate wages contributing an additional financial blow.
While students – particularly women and poorer people – will bear the brunt of the costs, the taxpayer may also lose out: it’s estimated that higher university fees will increase student debt owing to government, including as much as $3bn that will never be repaid.
For more on the federal budget, see our budget wrap up.