The Australian Government has announced it will reduce student loan debts by 20 per cent.
Anyone with a student loan debt, including a HELP debt will have their debt reduced by 20% before indexation is applied on 1 June 2025. This means that someone with an average HELP debt of $27,600 will have their loan reduced by $5,520.
The changes are in addition to the introduction of the fairer repayment system changes announced by the government on 2 November 2024.
These changes will benefit more than three million Australians with a student loan and reduce approximately $16 billion of debt.
The proposed new reforms, which are subject to the passing of legislation are in addition to the recent HELP indexation changes announced earlier in the year and build on the improvements currently underway to help improve the higher education sector recommended in the Australian Universities Accord including:
- capping the HELP debt indexation rate
- introduction of paid Prac payments
- expanding Fee-Free Uni Ready Courses
- increasing the number of University Study Hubs
- introducing a new managed growth and needs-based funding model for universities.
For more information visit the 20% reduction of student loan debt page.