{"id":29895,"date":"2024-11-03T07:24:46","date_gmt":"2024-11-03T07:24:46","guid":{"rendered":"http:\/\/www.16news.com.au\/?p=29895"},"modified":"2024-11-03T07:24:46","modified_gmt":"2024-11-03T07:24:46","slug":"albanese-labor-government-to-make-student-loan-repayments-fairer","status":"publish","type":"post","link":"http:\/\/www.16news.com.au\/index.php\/2024\/11\/03\/albanese-labor-government-to-make-student-loan-repayments-fairer\/","title":{"rendered":"Albanese Labor Government to make student loan repayments fairer"},"content":{"rendered":"\n

The Albanese Labor Government will raise the minimum repayment threshold for student loans and cut repayment rates to make the repayment system fairer for all Australians with a student debt \u2013 around 3 million people.<\/p>\n\n\n\n

From 1 July next year, the Government will reduce the amount Australians with a student debt have to repay per year and raise the threshold when people need to start repaying.<\/p>\n\n\n\n

The reforms will apply to everyone who has a student debt, including all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other student support loans.<\/p>\n\n\n\n

The Government will lift the minimum repayment threshold from around $54,000 in 2024-25 to $67,000 in 2025-26 and introduce a system where repayments are based on the portion of a person\u2019s income above the new $67,000 threshold.<\/p>\n\n\n\n

For someone on an income of $70,000 this will mean they will pay around $1,300 less per year in repayments.<\/p>\n\n\n\n

This will deliver significant and immediate cost of living relief to Australians with student debt, allowing them to keep more of their hard-earned money at a time when many are looking to save for a house deposit or start a family.<\/p>\n\n\n\n

The move to a marginal repayment system is a recommendation of the Australian Universities Accord, and has been informed by the architect of the HELP system, Emeritus Professor Bruce Chapman.<\/p>\n\n\n\n

This reform addresses one of the many unfair changes the Liberal Party made when they were in government to lower repayment thresholds.<\/p>\n\n\n\n

Income threshold<\/th>Compulsory repayment amount under proposed change per year<\/th>Reduction in compulsory repayment amount per year<\/th><\/tr><\/thead>
$60,000<\/td>$0<\/td>$600<\/td><\/tr>
$70,000<\/td>$450<\/td>$1,300<\/td><\/tr>
$80,000<\/td>$1,950<\/td>$850<\/td><\/tr>
$90,000<\/td>$3,450<\/td>$600<\/td><\/tr>
$100,000<\/td>$4,950<\/td>$550<\/td><\/tr>
$110,000<\/td>$6,450<\/td>$700<\/td><\/tr>
$120,000<\/td>$7,950<\/td>$450<\/td><\/tr>
$130,000<\/td>$9,550<\/td>$200<\/td><\/tr>
$140,000<\/td>$11,250<\/td>$650<\/td><\/tr>
$150,000<\/td>$12,950<\/td>$550<\/td><\/tr>
$160,000<\/td>$14,650<\/td>$550<\/td><\/tr>
$170,000<\/td>$16,350<\/td>$650<\/td><\/tr>
Above $180,000<\/td>No change<\/td>No change<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The Government is reforming the student loan system to make it fairer for young Australians.<\/p>\n\n\n\n

We have already announced reforms to indexation that will make sure student debts don\u2019t grow faster than average wages.<\/p>\n\n\n\n

This reform also builds on the Government\u2019s substantial tertiary education reforms, including:<\/p>\n\n\n\n