HECS debt will be slashed, with a 20 per cent reduction set to provide relief for Aussie students.
A major shake-up to student loan repayments is set to provide financial relief for more than three million Australians, including many in the Goulburn Valley.
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The federal opposition has confirmed it will back Labor’s proposed 20 per cent HECS debt reduction, with the legislation introduced last week.
The change could shave an average of $5500 off student loan balances and raise the minimum repayment income threshold.
Prime Minister Anthony Albanese said the bill — the first introduced in the new parliament — was a key cost-of-living relief measure.
“Education is the most powerful weapon we have against disadvantage,” he said.
“Student debt can hang over young Australians … it affects how much they can borrow for a home and impacts their decisions about family and career.”
Shepparton-based La Trobe University students have welcomed the news.
“Having less HECS debt takes a load off — it’s not hanging over your head,” nursing student Ishaan Gill said.
“It means I can do other things like maybe travel now,” added fellow nursing student Taranbir Singh.
Education student Sheydin Tatterson said the change would ease anxiety.
“I often think about my HECS debt. I try not to, but it definitely impacts my future plans,” she said. “Having to think about paying it off in the future is a bit scary.”
Although international students aren’t directly eligible for the cut, social work student Nguyen Ngoc Vy Tran said it was still great news for those around her.
“My friends have a sense of relief now,” she said.
La Trobe University Shepparton head of campus Elizabeth Capp said the policy could encourage more regional enrolments.
“Anything that helps students have more accessibility to university is excellent — especially with the cost of living. We’d hope to see more young people enrolling,” she said.
Eligible loans under the new laws include HECS-HELP, FEE-HELP, VET Student Loans, and several support schemes for apprentices and students.
La Trobe student Sheydin Tatterson is studying education.
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Rechelle Zammit
La Trobe nursing student Ishaan Gill.
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Rechelle Zammit
La Trobe Shepparton head of campus Elizabeth Capp.
Photo by
Rechelle Zammit
La Trobe nursing student Taranbir Singh.
Photo by
Rechelle Zammit