Subscribe and turn on notifications🔔 : buff.ly/3F6ZiLt | Student loans will be lowered for more than three million Aussies under a new plan designed to stop HECS debts growing faster than wages.
The federal government has announced it will wipe $3 billion from Australians’ HECS-HELP debt.
Recent figures show Australians collectively have more than $74 billion in unpaid student debt. The government now plans to cap the HECS indexation rate to be whatever is lower out of the consumer price index (CPI) or the wage price index (WPI).
At the moment, HECS indexation is tied to CPI and that's caused everyone’s debts to skyrocket over the last few years. Aussies have seen their student loan debt indexed by more than 16% in the last three years, equating to around $12.3 billion.
The government has revealed that not only will it change the way student loan debt is indexed, but it will also backdate its move to June 1, 2023.
Read more: au.finance.yahoo.com/news/3-b...
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