HECS and HECS‐HELP: Equity issues.

There have been many changes to the Higher Education Contribution Scheme (HECS) since its introduction in 1989. The most significant of these is possibly the reforms announced in the 2003 Federal Budget, which allow universities to increase the contributions required of students by up to 25%. This paper considers the distribution of deferred HECS liabilities according to the socioeconomic status of students. An algorithm is presented for converting area‐level data to its individual‐level equivalent. It is found that students of lower socioeconomic status defer a much larger proportion of their HECS than students of higher socioeconomic status. The adverse side effects of HECS identified in the literature will therefore be more acute for low socioeconomic status background students than for their wealthier counterparts. [ABSTRACT FROM AUTHOR]