Student debt for 23,000 Ipswich residents was announced by the Federal Government last week.
“I’ve heard from students and people with a student loan debt who were shocked at last year’s spike in indexation. The Government has listened to you and now we’re taking action,” Federal Member for Blair Shayne Neumann said.
“This will make the system fairer and benefit all Australians with a HELP debt.”
The Government announced it would cut the student debt of more than three million Australians in this month’s Budget, in turn wiping around $3 billion in student debt, easing pressure on workers and students across the country.
It will provide significant relief for students in Ipswich, the Somerset Region and Karana Downs area, and those with a student debt, while continuing to protect the integrity and value of the HELP and other student loans systems, which have massively expanded tertiary access for more Australians.
In response to the Australian Universities Accord, the Government will cap the HELP indexation rate to be the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI) with effect from June 1, 2023.
The Government will backdate this relief to all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other student support loan accounts that existed on June 1 last year.
Minister for Skills and Training Brendan O’Connor said the reform continued the Government’s work to ease cost of living pressures and reduce and remove financial barriers to education and training.
“By backdating this reform to last year, we’re making sure that those with student loans affected by last year’s jump in indexation get this important cost-of-living relief.”
This will benefit every person in Blair with a HELP debt, addressing last year’s spike in the CPI indexation rate of 7.1 per cent and preventing growth in debt from outpacing wages in the future.
