One in four humanities students in Australia will take more than 25 years to fully repay their student loans, according to Treasury modelling released under freedom of information rules. The data highlights the impact of the Job Ready Graduates (JRG) program, introduced in 2021 under former Prime Minister Scott Morrison, which significantly increased fees for humanities, law, and creative arts degrees while lowering them for fields like science, nursing, and education.
Key Findings from Treasury Data
The modelling, prepared in May 2025, shows that the number of graduates leaving university with debts under $20,000 has doubled, while those with debts over $50,000 have increased by 70%. For humanities and creative arts students, almost two-thirds will face debts exceeding $50,000. Median repayment times for creative arts graduates have risen from 14 to 17 years. Additionally, more students are likely to never repay their debt to the government, as lower-earning fields have worse repayment prospects. The total university debt under JRG is estimated to increase by $800 million, but the government can only expect half of that to be repaid.
Political Reactions and Calls for Reform
Independent Senator David Pocock described the findings as deeply concerning, stating that the unfair burden of higher student debt in lower-income professions will impact graduates' ability to buy a home, start a family, or travel. He urged the Albanese government to urgently reform the scheme, noting that JRG has now been in place longer under Labor than under the Morrison government. Education Minister Jason Clare has called the scheme an "abject failure" but has taken a step-by-step approach to reform. In February, the government passed legislation to establish the Australian Tertiary Education Commission (ATEC), which will make recommendations on reforming the scheme. However, critics point out that ATEC is not required to consider student contributions and makes no explicit mention of JRG.
University Sector Concerns
Western Sydney University Vice-Chancellor George Williams said the modelling lays bare the deep unfairness of student fees, with people carrying debt for large parts of their lifetimes, often earning the lowest graduate salaries. He expressed concern that $50,000 arts degrees could remain in place until 2028 or beyond without a clear timetable for reform from the government. The university sector has noted that the scheme has not changed students' choices as intended.
