HECS Changes to Wipe Out $3 Billion in Student Debt

Subsidy increase to halve student debt for 3 million Aussies

Average student debt will drop by $1,100

The federal government will cut around $3 billion in student debts through a key change to the HECS and Help schemes. The changes will see the subsidy paid by the government increase from 20% to 30%. This will halve the amount of debt that students have to repay, with the average student debt falling by $1,100.

The changes will come into effect from 1 January 2024. They will apply to all students who have a HECS or Help debt, regardless of when they started studying.

The government estimates that the changes will benefit around 3 million Australians. These are the people who are currently struggling to repay their student debt due to the rising cost of living.

The changes are a welcome relief for students who are struggling to repay their debts. They will also help to boost the economy by freeing up money that students can now spend on other things.