Image: Greens Senator Mehreen Faruqi. Photo: AAP Image/Mick Tsikas.
By LAUREN FROST
Millions of Australians could be hit with thousands of dollars of increased student debt after Labor and the coalition have knocked back a Greens bill to end indexation.
The bill, which was put forward by Senator Meereen Faruqi, Australian Greens Deputy Leader and Education spokesperson, would have put an end to the rapidly rising indexation on student debt as well as increase the repayment threshold.
Last year, Aussies with student debt were smashed by a record high indexation rate of 3.9%, increasing the average student loan by a whopping $923.
This year on June 1, the already record high indexation rate is set to nearly double, with student debt holders likely to be facing an indexation rate of about 7%.
This will mean people with the average $24,770.75 worth of student debt will be hit with a $1700 increase. Those with student debt of $40,000 or higher will face a rise of $2876.21.
“The growing burden of student debt is making news every day and it’s beyond clear that urgent intervention is warranted. But Labor has elected to sit back and watch as millions of Australians are hit with a student debt avalanche on June 1,” Senator Faruqi said.
How does the growing student debt crisis impact you?
I have just launched an online student debt calculator so you can estimate how much your HECS/HELP debt will rise come June 1.
— Mehreen Faruqi (@MehreenFaruqi) April 18, 2023