In this month’s Budget, the government will reduce the student loan debt of more than 3.3 million Australians.
This action will help ease the pressure on students and workers across the country.
This will provide students with significant relief, while still protecting the value and integrity of the Higher Education Loan Program (HELP).
To address the concerns of the Australian Universities, the government will cap the indexation rate of the program at the lower of the CPI or the WPI from June 2023.
The government will also backdate the relief to the accounts that were previously registered on June 1, 2018.
This will benefit all students and workers with student loan debt.
It will help prevent the growth of debt from outpacing wage increases and address the issue of last year’s spike in the CPI.
The indexation rate for 2023 based on the WPI was only expected to be around 3.2 percent.
Individuals with an average debt of almost $26,000 will see around $1,200 erased from their loans this year as a result of the legislation.