Federal government promises $5k HECS relief for SA students and grads

Under a plan to wipe 20 per cent of all HECS debt nationally, South Australian university students and graduates are set to save. Click to see how.

South Australian university students and graduates will have an average of more than $5000 wiped from their HECS debts under a proposal from the Federal Labor Government if they are re-elected this year.

The government plans to cut 20 per cent of all student loan debts nationally if they win the election.

In the 2023-24 financial year, there were more than 201,000 higher education debtors in SA with about $5.2bn owing.

The 20 per cent reduction in HECS will wipe more than $1bn in debt from SA students and graduates.

Education Minister Jason Clare said the move would be “a game-changer”. Picture: NewsWire / Martin Ollman

Federal Education Minister Jason Clare said it would be “a game-changer” for SA students and graduates.

About three-million Australians would benefit from the plan, with a total of $16bn in debt being wiped.

They also plan to lift the minimum threshold for HECS repayments by more than $10,000 a year from $54,000 to $67,000 in a move to ease the cost of living.

It would mean that a graduate with an income of $70,000 would pay about $1300 less per year in debt repayments.

The changes apply to HELP, VET Student Loan, Australian Apprenticeship Support Loan and other student support loans.

“Last year we wiped $3bn in student debt and this is the next step,” Mr Clare said.

“All up, it means we are wiping close to $20bn in student debt.”

The date for the federal election will be sometime in the next four months but it has not yet been set in stone.