The Albanese Labor Government’s cut to student debt by 20 per cent will benefit more than 19,100 Macarthur residents, says federal MP Dr Mike Freelander.
“This is an exciting outcome for thousands of Macarthur residents,’’ he says of this week’s move in the national parliament.
“I believe that getting an education shouldn’t come with a lifetime of debt.
“I am a firm believer in the power of education, and this is an exciting outcome that will benefit thousands of local students and former students.,’’ the member for Macarthur said.
More than three million Australians nationwide benefit from the decision to wipe more than $16 billion in student debt.
The government says cutting student debt will ease pressure on workers and students across the country.
For someone with the average debt of $27,600 this will see around $5,520 wiped from their outstanding Higher Education Loan Program (HELP) loans.
Backdated to June 1, it will reduce the burden for Australians with a student debt – including all HELP, Vocational Education and Training (VET) student loans, Australian Apprenticeship Support loans, Student Startup Loans, and other student loans.
In addition to cutting student debt by 20 per cent, the legislation raises the minimum amount before people have to start making repayments from $54,435 to $67,000 and reduces minimum repayments.
For someone earning $70,000 it will reduce the minimum repayments they have to make by $1,300 a year.
This builds on the government’s reforms to fix the indexation formula, which has already cut more than $3 billion in student debt.
This means, all up, the Albanese Labor Government will cut close to $20 billion in student debt for more than three million Australians.
The ATO will now begin the work of processing the cut. This will take a little while but the 20 per cent cut to student debt is guaranteed. Most people will see their balance reduced before the end of the year, backdated to June.