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Australia’s public universities (that is most of them) basically operate on a subsidised ISA built into the tax system called HECS. It’s been going for almost 30 years and was started to double the rate of higher education participation, which was happened. There are huge problems with the Australian university system, but I’d say HECS is one of the lesser problems.

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If you read the tweet thread this HECS model solves a couple of the big issues. There is no adverse selection if the scheme is open to all at any institution, and there is no legal and regulatory risk since, I believe, the repayment of the loan is legally mandated through payroll rather than being subject to a private school chasing students around in courts.

Yes, for most repayment is via mandatory payroll withholding tax. If you fall outside of that system it’s also included in your annual tax return.

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