Labor’s HECS debt ‘game-changer’ promise to uni students

Victoria’s university students and graduates will have an average of more than $5700 wiped from their HECS debts under a Labor plan – if it holds on to power at the next election.

The 20 per cent reduction in the HECS debt pledged by Labor will wipe more than $4.6bn in debt from Victorian students and graduates.

Victoria’s university students and graduates will have an average of more than $5700 wiped from their HECS debts under a Labor proposal – if it retains power at this year’s federal election.

In the 2023-24 financial year, there were more than 805,000 higher-education debtors in Vic­toria, with about $23bn owing.

The 20 per cent reduction in the HECS debt pledged by Labor will wipe more than $4.6bn in debt from Victorian students and graduates.

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

About three million people would benefit from the plan, with a total of $16bn in debt being wiped – an average of $5520 per student or graduate.

It comes after the government cut about $3bn in student debt last year.

It comes after the government cut about $3bn in student debt last year.

It also plans to lift the minimum threshold for HECS repayments by $13,000 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 a year in debt repayments. The changes apply to HELP, VET Student Loan, Australian Apprenticeship Support Loans 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 Liberals called these changes ‘terrible’.

“(Opposition Leader) Peter Dutton wants Australians to struggle with more debt; we want to cut it.

Melbourne University. Picture: AAP

Melbourne’s RMIT University. Picture: Supplied

“The next election is a choice between building Australia’s future or taking Australia backwards.”

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

Assistant Minister for Education Anthony Chisholm said while Mr Dutton offered no plan to help students and workers with the cost of living, Labor wasn’t just offering relief now, it had put forward a plan to go further.

“We said we’d create a better and fairer education system,” he said.

“Our HECS debt relief and changes to how indexation is calculated are a major part of this plan.

“Wiping a further $16bn in student debt will bring millions of current and former students a bit closer to paying off their student loans.”