More than 30,000 people on the Central Coast will benefit from the Federal Government’s decision to cut student debt.
The move will wipe about $3 billion in student debt nationwide– easing pressure on workers and students across the country.
In response to the Australian Universities Accord, the Government will cap the HELP indexation rate to the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI) with effect from June 1, backdating the relief to all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other student support loan accounts that existed on June 1 last year.
Federal MPs Gordon Reid (Robertson) and Emma McBride (Dobell) said the measure would benefit every person on the Central Coast 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.
The 2023 indexation rate based on WPI would only have been 3.2 per cent.
An individual with an average HELP debt of $26,500 will see around $1,200 wiped from their outstanding HELP loans this year, pending the passage of legislation.
Reid said 15,470 people in Robertson and 15,404 in Dobell would benefit.
“I’ve heard from students and people with student loan debt who were shocked at last year’s spike in indexation,” he said.
“This Government has listened to you and now, we’re taking action.
“This will make the system fairer and benefit all Australians with a HELP debt.”
McBride said the Government understood that students were doing it tough with cost-of-living pressures.
“By wiping $3B in student debt, including for more than 30,000 students on the Coast, we are helping to take pressure off local students and workers,” she said.
Minister for Education Jason Clare said the Universities Accord recommended indexing HELP loans to whatever is lower out of CPI and WPI.
“We are doing this and going further; we will backdate this reform to last year,” he said.
“This will wipe out what happened last year and make sure it never happens again.”