University students cramming for exams and furiously typing assignments are burdened by financial worries that are holding them back.
A new analysis by peak tertiary body Universities Australia shows the cost of rent, groceries, utility bills and petrol has increased substantially and combined with some of the highest university fees recorded.
It is urging Labor to reform the Job-ready Graduates Package, introduced under the former Morrison government, as students battle higher day-to-day costs.
The scheme restructured fees by slashing costs for fields such as education, nursing and engineering to steer students towards them but hiked fees for arts and law degrees.
Studies have shown the scheme has hardly influenced student behaviour around degree choices.
Overall, the cost of maintaining a basic student standard of living has risen by 29 per cent since 2021, faster than economy-wide inflation of 24 per cent, the group said.
However, student spending has increased by just 21 per cent since 2021 as many cut back to make ends meet, ultimately impacting their academic performance and university experience.
Universities Australia chief executive Luke Sheehy said the analysis showed students were being forced to absorb higher living costs while taking on larger debts for their degrees.
"Students are paying more for rent, more for groceries, more for electricity and more for fuel," Mr Sheehy said.
"At the same time, the government continues to punish students with some of the highest university fees in Australia's history."
He said students in some disciplines were paying up to $17,399 a year and more than $52,000 for a three-year degree.
Other financial barriers included a 40 per cent rise in rent, 27 per cent increase in grocery costs, 39 per cent increase in utility bills and an extra 43 per cent to fill up their vehicles.
The analysis was based on expenditure data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey.
It comes as the Albanese government invests about $16 billion to reduce student debt.
The government has yet to announce a new funding model following the 2024 Universities Accord, which recommended an overhaul.
The National Tertiary Education Union has called for the restoration of per-student funding across all disciplines, including degrees in humanities, social sciences, business and law.
Australian Associated Press
