Australian Treasury finds 25% of humanities students may take over 25 years to repay loans

Australian Treasury Reveals Long Repayment Periods for Humanities Students

New modelling from the Australian Treasury shows that one in four humanities students may take over 25 years to fully repay their student loans. This finding is linked to the job-ready graduates (JRG) program introduced in 2021 under the former Morrison government, which increased university fees for humanities, law, and creative arts degrees.

Impact of the Job-Ready Graduates Program on Student Debt

The JRG program was designed to encourage students to pursue degrees in fields like science, nursing, education, and IT by lowering fees in those areas, while significantly increasing fees for humanities and creative arts courses. According to the Treasury modelling prepared in May 2025 and released under freedom of information rules, this approach has led to a substantial rise in student debt among humanities and creative arts graduates.

• Almost two-thirds of humanities and creative arts students will graduate with debts exceeding $50,000.
• The median repayment time for creative arts graduates has increased from 14 to 17 years.
• The number of graduates with debts under $20,000 has doubled, while those with debts over $50,000 have increased by 70%.
• Many humanities students are expected to carry debt into their 40s.

The modelling also indicates that students in lower-earning fields have poorer repayment prospects, which means the government is likely to recover only about half of the increased debt despite the rise in total university debt by $800 million under the JRG scheme.

Calls for Reform and Government Response

Independent senator David Pocock described the findings as deeply concerning, highlighting the long-term financial burden on graduates in lower-income professions. He urged the government to urgently reform the JRG program to address intergenerational equity issues.

Education Minister Jason Clare has acknowledged that the scheme has failed to discourage arts degrees as intended and stated that the government is approaching university sector reform gradually. In February, legislation was passed to establish the Australian Tertiary Education Commission (Atec), which will advise on reforms, although it currently has no explicit mandate to review the JRG program.

Western Sydney University vice-chancellor George Williams emphasized the unfairness revealed by the Treasury modelling, noting the systemic problems in the student fee structure. He expressed concern that high fees for arts degrees could remain until 2028 or beyond without clear government plans for reform.

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