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The Costs of Unpaid HECS Debts from Graduates Going Overseas

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  • Bruce Chapman
  • Tim Higgins

Abstract

HECS is an income contingent loan designed to collect tuition from Australian university students. The debt is collected on the basis of recorded incomes and as a consequence, debtors living overseas will not repay. Using various data sources and assumptions, multiple scenarios are considered in order to estimate the extent of uncollected overseas debt. A conservative estimate of the amount of foregone HECS revenue for the 1989 to 2011 graduate cohorts working overseas is over $400 million, but it is shown that under other plausible assumptions the foregone revenue may be close to double this amount.

Suggested Citation

  • Bruce Chapman & Tim Higgins, 2013. "The Costs of Unpaid HECS Debts from Graduates Going Overseas," Crawford School Research Papers 1303, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:crwfrp:1303
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    File URL: http://ssrn.com/abstract=2202574
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