Changes in the May 14 budget will cut the student debt of more than three million people, wiping more than $3 billion from what people owe.
The government will cap the HELP indexation rate to be the lower of either the Consumer Price Index (CPI) or the Wages Price Index (WPI), backdated from June 1 last year. At present the indexation is based on the CPI.
The new indexation arrangement will be backdated to all HELP, VET Student Loan, Australian Apprenticeship Support and other student support loan accounts operating on June 1 last year.
The governments recent Universities Accord report pointed to the need for reform of the student debt arrangements, and recommended rejigging indexation, although it did not go as far as backdating.
The r…
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