Student welfare debt check saves $46m in overpayments

STUDENTS on welfare have dodged debts totalling $46 million after they were asked to review the details they had provided to the federal government.

STUDENTS on welfare have dodged debts totalling $46 million after they were asked to review the details they had provided to the federal government.

More than 200,000 students were randomly selected and urged to say whether they had changed from full-time to part-time study, which would mean their welfare payments should have been reduced.

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More than 200,000 students were randomly selected for the review. Picture: Thinkstock

The reviews uncovered $3.9 million in debts but avoided more than $46 million in overpayments. The government expects to complete another 150,000 reviews every year, saving a further $49 million by July next year.

“When it comes to debts, prevention is always better than a cure, and by updating their details, students can avoid unnecessary financial headaches,” Human Services Minister Michael Keenan said.

“These reviews demonstrate the government’s ongoing commitment to students by helping them avoid debt while protecting the integrity of the welfare system.

“It’s very important students — and anyone receiving a welfare payment — keep their details updated with the department, whether they receive a letter or not.”