STUDENTS and graduates across Ipswich, the Somerset Region and Karana Downs have every reason to celebrate, with thousands of dollars set to be wiped from their student loans under bold new Federal Government reforms.
I’m one of the 23,000 locals with a Higher Education Loan Program (HELP) debt set to benefit – $8200 has just been wiped from my own student loan.
The 20 per cent cut means an average of $5250 will be cleared from balances nationwide.
In total, $16 billion in student debt will be erased for more than three million Australians, lifting a huge burden off young people as they start their careers or save for a home.
“Seeing debt removed feels like a huge weight off my shoulders,” said a University of Southern Queensland student.
“It’s tough trying to get ahead when you’re paying off a debt that grows faster than your wages. This will make a real difference.”
The reforms, backdated to June 1, increase the repayment threshold from $54,435 to $67,000, allowing graduates to earn more before paying anything back.
For someone earning $70,000, annual repayments will drop by about $1300 – money that will now stay in the pockets of locals.
Aspiring homeowners are also set to benefit, with banks being urged to treat HELP debts more fairly when assessing home loan applications.
And it’s not just university students celebrating – 280,000 TAFE and VET students are also included in the reforms.
Federal Member for Blair Shayne Neumann called the reforms “a game-changer”.
“Cutting student debt by 20 per cent will ease pressure on workers and students in my community,” he said.
“This is about fairness and giving people on lower incomes more money in their pockets. Combined with our fix to indexation, which already cut $3 billion in student debt, this is a big win for locals.”
