Federal Education Minister Jason Clare has left the door open for changes to how HECS-HELP debts are paid back, including how indexation is applied to the original debt.
Key points:
- The education minister says he is open to changing how HECS debts are indexed
- Indexation of 7.1 per cent has added $1,775 to the average $25,000 HECS-HELP debt
- Under the current rules, indexation is applied to the original debt and not the current balance
More than 3 million Australians saw their student debt rise with inflation on Thursday as an indexation of 7.1 per cent was applied to the debts.
It is the highest indexation in more than three decades, with average $25,000 HECS-HELP debts rising by $1,775.
The increase has caused major concerns that the increase c…
Read the full article at: https://www.abc.net.au/news/2023-06-02/labor-open-to-changing-how-indexation-applied-to-hecs-help-debt/102428294