Universities are warning that job cuts affecting thousands of academic and professional staff may continue unless the federal government reforms how degree costs are calculated. High school seniors considering their college options are facing significant financial burdens, particularly those interested in humanities degrees, which could leave them with debts nearing $55,000.

These rising costs stem from changes made during the Morrison administration, known as the Job Ready Graduates (JRG) program. This initiative increased the costs of certain degrees while lowering others. Tori Henderson, a Year 12 student from a small town on the New South Wales south coast, expressed her concerns. "It's devastating. That is more than a house deposit nowadays. It's actually quite disheartening," she said. Henderson dreams of studying arts or communications, but those programs fall into the most expensive category, leading her to consider less appealing options or even forgoing university altogether.

"You need a roof over your head, you need a car to get around, and at the end of the day, is your education worth more than your stability in the future?" she questioned. This dilemma is shared by over 400,000 domestic students expected to begin their degrees next year.

Universities Australia projects that a three-year arts degree will cost approximately $53,400 by the time students graduate in 2028. The JRG program aimed to steer students toward degrees in fields of national priority, such as teaching and nursing, which have seen significant discounts. However, research indicates that the program only influenced the choices of 1.52 percent of university applicants, leaving many with substantial debts under the Higher Education Loan Program (HELP).

University leaders are sounding alarms about potential job losses. Professor Andrew Norton from Monash University expressed concern for arts graduates, stating, "Their income won't be enough to fully repay their debts, and so they will be left with a HELP debt hanging over them for their entire careers." The university sector is reportedly facing a crisis, with unions attributing the situation to poor management and students feeling hopeless about their futures.

The university lobby claims that legislative changes have resulted in a $1 billion annual shortfall for universities. Luke Sheehy, chief executive of Universities Australia, stated, "You can't put nearly a billion dollars of financial pressure on a system each and every year without having this materialize with job cuts, with courses reduced." He emphasized the need for urgent reform to prevent further job losses and course reductions.

The JRG program was passed in 2020 under the Morrison government, with Labor opposing it at the time. However, the current government has not provided a timeline for its repeal or a replacement plan. A major review of higher education, known as the Universities Accord, concluded that the JRG policy had "failed" and required immediate remediation. Sheehy urged the government not to delay action, stating, "The longer Job Ready Graduates stays in place, the longer our system will start to suffer."

In response, Education Minister Jason Clare noted that the government has implemented 31 of the 47 recommendations from the Universities Accord. He described the Accord as a blueprint for higher education reform over the next decade. Clare mentioned that reforms already introduced have resulted in increased funding for students and universities, including a 20 percent reduction in student debt.

Research from the Mitchell Institute at Victoria University highlights a troubling trend: while student debt is rising, the value of a university degree is declining. In 1981, graduates aged 30 to 39 earned 59 percent more than their peers without degrees. By 2021, that premium had dropped to 21.7 percent. Professor Peter Hurley, director of the Mitchell Institute, noted that many students are carrying their debt into their thirties and forties, limiting their ability to purchase homes or start families.

For Tori Henderson, these financial dynamics weigh heavily on her future. She is considering delaying her studies to continue working at a local cafe while awaiting her final Year 12 marks. "Everyone should have the same chance to a degree that they want to do, a job that they want to do at the end of the day, and it's just unfair," she said.