Higher Education

Student loans and debt are an ongoing issue within the United States. According to US News, the average Bachelor’s degree holder takes 21 years to pay off his or her loans; However,  under federal income-based repayment options, any remaining debt will be forgiven after twenty years. Still, numerous stories across the United States have shown it takes some people 25, maybe even 30 years, to pay off their loans. A Bachelor’s degree adds tremendous value towards one’s career in America, but we typically find people spending the early years of their adult life on plan to pay off their loans instantly. After earning a Bachelor’s degree, an entry-level job is standard, with an average salary that may increase over time. This might make the early years of one’s career quite difficult in paying back student loans, along with the students who take it a step further to pursue graduate programs.

Here in Australia, there appears to be a unique difference in both the student loan and application process. Having met a good amount of young Australians in the Sydney region, I had the opportunity to sit down with a young man named Andy, a few years out of University and at the start of his career. We spoke about the differences in the higher education systems between our two countries, some of which were shocking to him. The first notable difference was how the systems process their loans, as well as receiving them back.

“You can get a loan from your Uni if you want,” Andy stated, “They will happily do it for you. Or, there are plenty of government programs set up for loans. The most common one is the Higher Education Loan Program. That runs directly through the Australian government.” When I explained to Andy the process of how Americans typically pay back their loans (almost immediately after graduating), he actually proceeded to laugh in disbelief. Not only did he disagree with this strategy, but found it quite compelling, even asking, “How are you supposed to start paying off loans with an entry-level job?”

As an American, I found our process to be the standard. It had always been embellished in my mind that this was the correct way to pay off the loans as soon as possible. When Andy explained to me the common way of paying off loans here in Australia, it seemed pretty understandable. “They usually allow you to establish yourself before anything - Let you start your career, find your way. - Once you reach a certain salary, you pay off your loans.”

What Andy was referring to was the Australian Taxation Office’s policy on paying loans back, which states: “You must start making compulsory repayments against your study or training support loan when your repayment income exceeds the minimum repayment threshold. This is even if you are still studying or undertaking an apprenticeship. The repayment thresholds are adjusted each year to reflect any changes in average weekly earnings.” In short, once a certain salary is made, whether in University or not, your repayment begins. Andy also mentioned that while in school, you may pay off your loans without any interest. In addition, many programs do not inquire an interest rate over time. Contrary to this, the United States’ banks and other loaning programs notoriously add interest to debt over time. It was surprising to listen to Andy’s intake on the Australian programs, as they were all new to me. During this time, he appeared to be quite supportive of them, even indicating that some of the American programs and policies “would not have helped” someone in his position.

As an Asian Australian, I lastly touched with Andy on the topic of race relating to both the application process and scholarship eligibility here in Australia. I explained to him certain programs and scholarship funds set up for minority students in America, as well as Affirmative Action. Andy claimed to have “never heard” of anything too similar to this. When I asked if he was required to indicate his Asian ancestry on his University application, he seemed confused, even quipping, “Uni probably didn’t know I was Asian until I stepped foot there.”

When I explained my process of checking ‘Caucasian’ on my College application, he found a slight similarity. “The only section they really have is a ‘yes’ or ‘no’ column for whether or not you are of Aboriginal or Torres Strait descent.” He spoke of the goal to encourage indigenous peoples to attend university. When it came to programs or scholarships that benefitted them, he indicated that he could not comment due to, “not knowing too much about the issue.” Overall, he found our programs both beneficial and harmful, but put a strong emphasis on the fact that America is a more diverse nation with a different history from Australia.

Being aware and somewhat critical of the student loan policies in America, interviewing Andy helped shine light on an issue I hold quite dear. When observing how another country handles higher education on a number of broad spectrums, it is always important to look at how these policies came to be, how the citizens feel about it, and government’s willingness to move forward if something is not right. Andy was eager to answer my questions while appearing incredibly interested in America’s viewpoints, often times questioning the general logic/reasoning behind each policy. Getting an Australian’s view on both our countries opened up ideas about cultural perceptions on handlings something as simple as education. When speaking of the differences in policies, Andy’s finals words were, “I guess Uni is just different here, mate.”

• Brian Stamper