A university graduate who racked up $1million in loans will have up to $165,000 of it wiped under Labor’s new plan to axe student debt by 20 per cent.
The measures will see over $16billion in student debt erased by the Albanese government for around three millions Australians by June 2025.
For someone with the average HELP, formerly called HECS, debt of $27,600 they will have around $5,520 wiped from their outstanding student loans next year.
Australian Tax Office data, published by Sky News, has revealed there are at least 50 students who have accrued over $250,000 in student debt – most of which will never be repaid even with the 20 per cent reduction.
One such graduate has managed to run up a loan bill of $831,675, meaning they will likely receive a reduction of $166,335.
This is almost as much as the loan caps for the most expensive courses, such as aviation and medicine which are just shy of $175,000.
Many of these colossal loans accumulated before caps were introduced in 2020 with taxpayers to foot the bill for the $16billion discount.
Shadow education minister Sarah Henderson told Sky News the government’s plans were ‘riddled in unfairness and elitism’ and would only benefit those who had been irresponsible enough to amass large loans.
A university graduate who racked up $1million in loans will have $165,000 of it wiped under Anthony Albanese ‘s plan to axe student debt by 20 per cent (pictured, Tafe in Sydney)
The measures will see over $16billion in student debt erased by the Albanese government for around three millions Australians by June 2025 (Anthony Albanese is pictured)
‘That 50 people with a debt of more than $250,000 will receive at least $50,000 is nonsense when so many young Australians can barely pay the rent or put food on the table,’ she said.
‘Not only is this unfair to the millions of Australians who have worked hard to pay off their HELP loan, but it does not nothing for 24million people without a student loan.
‘Yet, at a cost of $16billion, every household will pay the price.’
Treasurer Jim Chalmers previously said the policy was about ‘making student debt repayments fairer’.
‘We’ll lift the minimum repayment threshold to $67,000 and move to a marginal repayment system,’ he said.
‘For someone on $70,000 a year, they’ll pay around $1,300 less per year. It’s about helping you keep more of what you earn.’
