TRIGGER WARNING: Please note, this article discusses topics related to mental health.
HECS debt, job insecurity and study pressure are leaving Australian university students mentally and physically exhausted, according to students and experts.
The rate of indexation, which can add tens of thousands of dollars onto a student’s debt, was identified as a major source of anxiety, despite the Albanese government’s recent pledges to wipe billions in student debt
Avrille Ortiz, 18, a first-year journalism and international studies student at the University of Technology Sydney, said the demands of university life, job hunting, and rising student debt were already weighing heavily on her wellbeing.
“It’s a complicated thing – being a student that’s looking for work to earn something on the side is tough,” Ortiz said.
“Instead of having time to study, I have to go out and find a job.”
James Croft, a clinical psychologist and student counsellor at The University of Sydney, said these challenges are representative of those experienced by many students.
“Financial stress can weigh really heavily on students, and I often see it show up as anxiety, exhaustion, or low motivation,” Croft said. “Some describe feeling constantly on edge, worrying about money in the background all the time. Others might start withdrawing socially or struggle to concentrate because they’re so preoccupied.”
We often hear things like ‘I don’t know what I’m doing’ or ‘what if I’ve made a mistake?’
Ortiz said juggling university life and job hunting means she rarely has time for herself.
“I very rarely get to hang out with my friends because of that, and if I really want a break, I stay up late to match our time zones just to play video games,” she said.
“It kind of helps my mental health by having companions, but I’m not getting adequate sleep.”
Croft said first-year students often struggle with the transition to university life, which can amplify exisiting pressures.
“First-year students are often navigating a lot of change at once — a new academic environment, being away from home, trying to make friends, managing their own time — and it can feel really overwhelming,” he said.
“It’s not a reflection of failure — it’s a normal response to a big life shift, and it’s something that can be worked through with the right support.”
While Ortiz praised the university’s mental health services for their confidentiality and accessibility, she said managing stress still required constant effort.
Avrille Ortiz in Year 12, before starting university. Photo: Supplied.
Indexation increases what Ortiz owes, even without taking on new subjects.
HECS debt places a lasting financial burden on graduates, according to Futurity Investment Group’s 2023 report Financial and Social Impact of the Cost of University Education 60 per cent of respondents aged 22–29 owe more than $20,000.
The report also found 51 per cent of 40-49 year-olds still carry student debt, most with balances exceeding $20,000, decades after finishing university.
“It makes me think how I will pay my debts once I get out of university,” Ortiz said.
“Every year, my HECS debt keeps growing… That constant increase adds pressure and stress, especially when you’re trying to focus on your studies and survive on a tight budget.”
Croft said financial stress can affect both academic performance and mental wellbeing. Job insecurity, especially nearing graduation, adds to this pressure.
“Many students worry about finding work and whether their degree will pay off, which can shake confidence and cause anxiety. We often hear things like ‘I don’t know what I’m doing’ or ‘what if I’ve made a mistake?'” he said.
“Graduating can stir up a lot — uncertainty about the future, pressure to get it right, fear of failing.
“Some students can feel lost without the structure that uni gave them. Others start comparing themselves to peers who seem to be landing jobs or moving forward faster. That can trigger anxiety or a sense of not being good enough. It’s a time of big transition, and it’s normal and healthy to look for support during that adjustment.”
On Tuesday the re-elected Labor government introduced a bill to parliament that would reduce all student loan debt by 20 per cent, saving students about $16 billion.
For a lot of students the stress isn’t just about HECS — it’s about the day-to-day realities of living costs, rent, food, transport.
“We promised cutting student debt would be the first thing we did back in Parliament,” Mr Albanese said. “And this week we’re introducing the legislation to make it happen.
“Because getting an education shouldn’t mean a lifetime of debt.”
While students welcome the HECS reduction, Croft said it’s not a complete solution.
“It won’t fix everything, but it’s a step,” Ortiz said. “At least it acknowledges that student debt is becoming unmanageable and affects mental health.
“I think it helps, but for a lot of students the stress isn’t just about HECS — it’s about the day-to-day realities of living costs, rent, food, transport.
“The HECS reduction might ease some longer-term anxiety, especially for students who were discouraged by recent indexation changes, but it’s not going to fix everything. It’s a good step, but definitely not the whole solution.”
James Croft, clinical psychologist and student counsellor at The University of Sydney. Photo: Supplied
Croft added that the pressure to succeed across all areas of life — study, work, and social connections can easily lead to burnout.
“A lot of students feel like they’re supposed to be doing everything perfectly, all at once,” he said.
“Start by being realistic about your capacity and priorities. Build in some structure, even a simple weekly plan, and treat things like sleep and downtime as essential, not optional. You don’t have to hustle constantly. It’s okay to ask for help — you don’t have to figure it all out on your own.”
Recent data supports Ortiz’s claims, showing mental health issues are widespread among university students. According to recent data, around one in four Australian university students report experiencing mental health issues, with 40 per cent saying they suffer from significant anxiety during their studies.
“The pressure of having to do good is heavy,” Ortiz said. “I try to study well so I can put something out there, but even finding a job as a student is affecting me every day, so trying to get through both is hard.”
Mental health experts have warned that the rising cost of education and the growing burden of debt are contributing factors to the high levels of anxiety and stress among university students.
For many students, the promise of reducing HECS debt is a welcoming change, but Ortiz remained cautious.
“Seeing the job market is quite un-motivating because I am under pressure to do good at university to make the most of my money,” she said.
Croft emphasised that universities need to understand financial stress isn’t only about managing money — it’s also deeply emotional.
“Students benefit when universities offer not only counselling and wellbeing support, but also practical help like emergency bursaries, scholarships, and financial advice — and make those services easy to access,” he said.
13 11 14 — Lifeline Crisis Support Line.
000 — Police (emergency).
Main image by College Degree/Flickr and GenCraft.
