Achi news desk-
More than three million Australians are expected to see their student debt cut in the federal budget as part of measures to ease the cost of living.
Education Secretary Jason Clare said the decision would wipe out about $3 billion in higher education loans, after loans grew 7.1 percent last year as a result of rising inflation.
The government said a person with an average HELP debt of $26,500 would have around $1200 written off their loans until legislation is passed.
“In other words, then the peg won’t rise faster than the average wage,” Claire said.
The relief will be retroactive to all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other Student Support Loan accounts that existed on 1 June last year.
“It will erase what happened last year and make sure it doesn’t happen again,” Claire said.
Skills and Training Minister Brendan O’Connor said the move would reduce and remove financial barriers to education and training.
“VET Student Loans and Apprenticeship Support Loans support many Australians to get the skills they need for secure and rewarding careers, and these changes ensure help is provided on a fairer basis,” O’Connor said in a statement.
The government said based on WPI the rate of indexation was 3.2 percent.
The significant increase in indexation last year has caused concern for many people with student loans as Australians grapple with the cost of living and barriers to the housing market.
The Albanian government has been under increasing pressure from the Greens and the Cross to act on the issue.
A petition started by independent MP Dr Monique Ryan to make HECS debts easier to repay has gained 288,000 signatures.
