Anthony Albanese flags huge changes to HECS debt: What it could mean for young ... trends now
Prime Minister Anthony Albanese has promised he will tackle the growing debt spiral faced by university students face stuck with hefty HECS repayments.
On Thursday the PM promised to make HECS 'simpler and fairer' after he admitted the average student debt has skyrocketed in the past three years.
He blamed high indexation rates - tied to soaring cost of living inflation - and increased contributions for subjects like law and arts, brought in by the previous government.
'There’s a range of areas we need to do much better for the younger generation and HECS is one of them,' Mr Albanese said.
This year, Bachelor of Arts students will pay $16,323 for their course, with the government funding of $1,236, bringing the three-year cost to almost $50,000.
Payments on a HECS debt start once the compulsory repayment threshold has been reached. Currently it kicks in when a graduate starts earning $51,550 a year, with a minimum repayment rate of 1 per cent a year.
There is no deadline for the entire debt to be repaid but the repayment rate works on a sliding scale, with the mandatory minimum contributions increasing with rising incomes.
On Thursday Prime Minister Anthony Albanese promised to make HECS 'simpler and fairer'.
The crippling cost of living crisis and increasing student debt are having a massive impact on fresh graduates, with another hike expected in June
HECS debts are indexed to read more from dailymail.....
