New laws that will wipe hundreds of dollars from the university debts of millions of Australians have passed the Senate.
The legislation will change how annual indexation charges on HECS-HELP debts are calculated.
Currently, it’s based on the Consumer Price Index, which caused loans to surge by 7.1 per cent last year.
Now, it will be determined by what is lower of the CPI or the Wage Price Index.
The average debt will be reduced by $1200 and anyone still owing money as of June last year will receive a refund or credit.
The indexation change for HECS-HELP debt was included in this year’s federal…