“While the HELP program is not considered a form of welfare and the intent is to get those who benefit from education to make a contribution, the generosity of the HELP program is at odds with otherwise highly targeted and means-tested social policy in Australia.”
“Lower generosity of the HELP system would … not necessarily compromise the education and social policy goals of the scheme.”
One of the problems plaguing the HELP scheme is the high level of bad debts – the Department of Education and Training said as much as 25 per cent of new HELP debt was “doubtful”. This year alone $1.6 billion was lent to students.
Under reforms by the former education minister Simon Birmingham, the repayment threshold has been lowered as a way of recoveri…
Read the full article at: https://www.afr.com/news/policy/education/oecd-says-student-loans-scheme-should-be-less-generous-20181211-h18zot