Anthony Albanese’s bold plan to forgive $14billion HECS debt as part of plan to win the next election
Total student debt could be cut by as much as $14 billion – a saving for Aussies of tens of thousands of dollars – under new plans to revive Anthony Albanese’s ailing Labor Party ahead of the federal election.
The government is reportedly exploring ways to ease the debt burden of graduates, following the cost of living budget earlier this year.
One option being explored is to simply reduce the total student debt of $70 billion by 20 percent, which would reduce individual loans by the same amount.
Under the Higher Education Loan Program (HELP), formerly called HECS, student loans are indexed to the consumer price index, meaning graduates are plagued by higher repayments as inflation rises.
Other options being therefore considered include adjusting or eliminating indexation for a certain period, changing reimbursement rates or suspending reimbursements for those on parental leave.
Government ministers are also toying with the idea of ββraising the threshold at which a graduate must start paying off loans on their current income of $51,550.
The plans, first reported by the Sydney Morning Heraldhave yet to be completed.
Total student debt could be cut by as much as $14 billion β saving individuals tens of thousands of dollars β under new plans to revive Anthony Albanese’s ailing Labor Party ahead of the federal election (photo: Mr Albanese visited Tuesday TAFE Newcastle)
One option being explored is to simply reduce the total student debt of $70 billion by 20 percent, which would reduce individual loans by the same amount.
But if approved, they would send a bold message from Labor to younger voters, who are facing rising interest rates ahead of next year’s election.
The Prime Minister has had a torrid few weeks after the damaging revelation of the purchase of his $4.3 million clifftop mansion during a cost-of-living crisis when many Australians struggled to put food on the table. to get.
This was exacerbated by the media frenzy surrounding his alleged Qantas flight upgrades.
Mr Albanese has denied ever personally asking former Qantas CEO Alan Joyce for an upgrade.
Treasurer Jim Chalmers has previously made clear he wants to avoid further cost-of-living relief that could fuel inflation.
This makes changes to student debt more attractive because it prevents more money from being pumped into the economy.
Daily Mail Australia approached the Cabinet Office for comment.