Before the federal election, Labor made a promise to cut student loan debts like HECS and HELP debts by 20 per cent if it was re-elected.
Well, Labor won and the new session of parliament is due to start again in July.
So what does that mean for you if you have an outstanding student loan? We answer some of your biggest questions.
What do I need to do to get the 20 per cent applied to my loan?
Nothing. If you still have an outstanding HECS or HELP loan as of June 1 this year, then the cut will automatically be applied by the Australian Tax Office, or ATO.
It’s important to note here that the tax office isn’t going to be giving you cash if you still have a debt. Rather, the cut will be applied to how much you owe and taken off the balance.
