Member for Robertson Dr Gordon Reid has welcomed the announcement that the Federal Government will cut a further 20 per cent off all student loan debts if re-elected at the next election.
The move would wipe about $16B in student debt for around three million Australians by June 1 next year.
Reid said student debts were a significant pressure for Central Coast residents.
“I am pleased that our government will cut an extra 20 per cent off student debts, for everyone,” he said.
“This is on top of our already announced education reforms to change the way student debts are indexed, plus raising the threshold to $67,000 before you start paying your student debt.
“Our government will continue to identify even more ways we can ease the cost of living for everyone in our community.”
The move would apply to all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other income-contingent student support loan accounts that exist on June 1.
Someone with the average HELP debt of $27,600 would see around $5,520 wiped from their outstanding HELP loans next year.
It would see close to $20B in student loan debt cut.
Education Minister Jason Clare described the move as a game changer.
“This is another significant reform that will help us build a better and fairer education system,” he said.
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