Education Minister Jason Clare has announced a $3 billion change to student debt indexation.
Responding to the Australian Universities Accord, the government will introduce legislation to cap the HELP indexation rate to be the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI) with effect from 1 June 2023.
This will be backdated to all HELP and VET loans, Australian Apprenticeship Support Loan and other student support loan accounts that existed in June last year.
Clare said this would lower the student debt obligations of nearly 3 million Australians.
“The Universities Accord recommended indexing HELP loans to whatever is lower out of CPI and WPI,” he said.
“We are doing this, and going further. We…
