Millions of Australians will have hundreds of dollars wiped from their HECS debt after the government passed new laws which will change how the student loans are indexed each year.
News.com.au reports about $3bn will be removed from more than three million Help loans; the average balance of $27,000 incurring a refund of about $1200, with the refunds now to be automatically processed by the ATO.
The new laws were introduced after Australians were hit with a massive 7.1 per cent annual indexation fee on June 1, 2023 after inflation soared to rates unseen since 1990.
Education Minister Jason Clare says the new law would prevent Australians from getting slugged with high indexation fees due to inflation spikes, adding if Labor were to be re-elected at next year’s Federal Election, they will wipe a further 20 per cent off student loans, totalling to about $16 billion.
