New study on economic impact of 'Generation Debt'

CAPA has released a report today examining the impact of student debt on first home ownership, fertility and migration.

The imminent higher education reform package is tipped to increase student fees and introduce interest charges for student debt.

"There has been little research on the social and economic impact of student debt in this country. In this context, any reforms that will further increase debt are frightening and irresponsible," commented CAPA President, Mr Benjamin McKay.

The CAPA report collates Australian and international research which demonstrates that student debt contributes to young people delaying leaving home, buying a first home and having children.

"The Howard Government seems to think that student debt is the funding panacea for higher education."

"This view demonstrates little regard for the economic consequences of a generation that will struggle to afford to buy a house or have kids, let alone save for their own children's education," continued Mr McKay.

"Student debt doesn't just affect graduates and their families. All Australians will feel the impact of increased fees charged by professionals such as doctors, dentists and lawyers in order to make their debt repayments."

"Declining fertility and an ageing population mean increasing costs for public health, aged care and superannuation, that will be borne by all Australian taxpayers," Mr McKay concluded.