Independent MP Monique Ryan is demanding the Federal Government take urgent action to help people still paying off debt more than 20 years after a controversial student loan scheme was scrapped.
Under the Student Financial Supplement Scheme (SFSS) that began in 1993, hundreds of thousands of young people were induced to trade in their welfare benefits for what was promoted as an “interest-free” loan.
With each dollar of welfare they gave up, they were entitled to receive $2 under the SFSS, which could be used to cover expenses while studying, such as accommodation and food.
Since the debt was indexed to the Consumer Price Index (CPI), many of the loan recipients have been saddled with ever-increasing debts decades later.
Yvette McPhail…
