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The Costs of Unpaid HECS Debts from Graduates Going Overseas

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  • Bruce Chapman
  • Tim Higgins

Abstract

HECS is an income contingent loan designed to collect tuition from Australian university students. The debt is collected on the basis of recorded incomes and as a consequence, debtors living overseas will not repay. Using various data sources and assumptions, multiple scenarios are considered in order to estimate the extent of uncollected overseas debt. A conservative estimate of the amount of foregone HECS revenue for the 1989 to 2011 graduate cohorts working overseas is over $400 million, but it is shown that under other plausible assumptions the foregone revenue may be close to double this amount.

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File URL: http://ssrn.com/abstract=2202574
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Bibliographic Info

Paper provided by Crawford School of Public Policy, The Australian National University in its series Crawford School Research Papers with number 1303.

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Length: 31 pages
Date of creation: Jan 2013
Date of revision:
Handle: RePEc:een:crwfrp:1303

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