The government is about to cut student debt by 20% across the board – so how much debt do young Australians have, and how much has it changed?
Labor’s student debt relief bill is likely to pass with bipartisan support and will slash the Hecs/Help debt for about 3 million graduates by an average of $5,500, according to the government.
Data from the tax office shows that the average Hecs/Help debt held by younger Australians increased by a third between 2009 and 2024, even with inflation taken into account. This coincides with a consistent increase in the time it will take to pay off the debt – now almost a decade.
Some economists say Labor’s 20% cut isn’t the fairest way to relieve student debt, while higher education expert Prof…