'Debt avalanche' to hit millions with student loans

A senate committee has finished examining a private members bill introduced by Australian Greens Senator Mehreen Faruqi which would halt indexation on student loans.

Departmental estimates suggested the proposed law could cost around $2 billion for the three years beyond the current financial year and $9 billion for ongoing revenue effects for loans made during that period. Wilding, who has a HECS debt of $130,000, will see the amount she owes increase by around $9100 if the predicted 7 per cent indexation is applied in June.

"I've always known that, for international students, they pay university fees upfront and they are exorbitant, but for an Australian citizen, I thought it's just all covered," she said. "The indexation will still be higher, and I'll still have more and more debt, which is crazy. It's just another thing to worry about really," she said.

"As a 23-year-old in this country, this is not what I should have to be dealing with. I am utterly disappointed and have no idea how I will get through."Faruqi, who tabled a dissenting report to parliament yesterday, said Labor and Liberal politicians were completely out of touch with the reality of millions struggling with student debt.

I have never paid a cent and don't intend to. Education is a human right so they can wait till I'm dead.

What about the degrees we completed at the start of covid and could not use them for 2yrs (especially aviation) now too much has passed to enter a program to kick start your career. Interest is growing on these HECs loans and no fkn work to pay for it. Its bullshit

Uni was free till Hawke introduced HECS in 88

I wish there was more warning that Labor was doing away with the 10% discount on non-compulsory payment. Was already saving up and budgeting to make big contributions.

PetraAu Once people have graduated, they don't have to start paying back anything until they earn the minimum threshold or more (for HECS). The current threshold is $47,000. Even then, the payments are not exorbitant.

Labour gov is really disappointing me so far :(

PetraAu Might have seen that coming.

Those 3 million people (voters) should take to the streets in organised protests and the govt might do something HECS

How about get rid off there debt like biden did 🤣

Study garbage that no one needs. Then complain.

But Senators all got free education !

I still have mine from ummm 1990s ahhhhhh lolololol I thought uni in the past century lolol was free should be free for all students

Or perhaps have a scheme where they do 1 year national service to pay off the debt or vice versa, do service to get free Uni education. Depending on the course though!

And once these students are qualified they will head overseas so other countries get the benefits and make much more money

Time to pay the piper kiddy pops. You take the loan , you pay it back Yes that includes you, who did a degree in lesbian dance theory.

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'Debt avalanche' to hit millions with student loansMillions of Australians will be hit with a "student debt avalanche", a senator has warned, after a parliamentary inquiry report rejected a proposed law to freeze $74 billion in HECS and HELP loans. Julie fucked up. Julie has NOBODY to blame but Julie. How did this take her six years? It's a five year program. Julie is a failure. Julie should have chosen a subsidised program with less pressure like nurse, janitor, child care worker or teacher. But ppl can have payments taken out by the government from their salary, but the indexation means the loan still grows despite the repayments. 7% is just ripping off people
Source: 9NewsSyd - 🏆 23. / 51 Read more »