The Federal Government has introduced legislation to cut 20% off all student debts, honouring a pre-election commitment and wiping more than $16B in debt for more than three million Australians.
Member for Robertson Dr Gordon Reid said 15,458 people with a student debt in his electorate would benefit, along with 14,996 people in the Dobell electorate.
“Across NSW, more than 880,000 people with a student debt will collectively have $5B wiped from their loans,” he said.
“As promised during the election, this is real cost-of-living relief helping millions of Australians, and people on the Central Coast.”
The government says cutting student debt by 20% will ease pressure on workers and students across the country.
Those with the average debt of $27,600 will see about $5,520 wiped from their outstanding Higher Education Loan Program (HELP) loans.
Backdated to June 1, it will reduce the burden for Australians with a student debt – including all HELP, Vocational Education and Training (VET) Student Loans, Australian Apprenticeship Support Loans, Student Startup Loans, and other student loans.
The legislation also raises the minimum amount before people have to start making repayments from $54,435 to $67,000 and reduces minimum repayments.
For someone earning $70,000 it will reduce the minimum repayments they have to make by $1,300 a year.
