Uni student debts tipped to hit $52b

Students will carry debts of $52 billion within four years under the government's higher education changes.

Australian Prime Minister Tony Abbott

Students will carry debts of $52 billion within four years under Abbott's higher education changes. (AAP)

University student debts are expected to more than double over the next four years to $52 billion under planned federal government changes.

The Mid-Year Economic and Fiscal Outlook released by Treasurer Joe Hockey on Monday showed almost two million people owed $25.1 billion under the Higher Education Loan Program as of June 30.

By the end of this financial year the amount of loans would grow to $30.6 billion before heading to $52 billion in four years.

The MYEFO papers noted that this was due to "improved access to student loans and students paying a greater share of the cost of their education" under the government's reforms.

Education Minister Christopher Pyne is negotiating with Senate crossbenchers to pass the government's plan to deregulate university fees and allow the government to scale back the money it provides.

Labor frontbencher Sharon Bird said the MYEFO figure was the clearest indication yet that students will pay more for their education and $100,000 degrees will become a reality.

She said the government had also refused to reveal in the document how much would be spent on an advertising campaign to promote the university changes.


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