$3 billion of student debt to be wiped out
The federal government will wipe out around $3 billion worth of student debt in the upcoming budget by changing the way HECS loans are indexed year-on-year.
$3 billion of student debt to be wiped out
Currently, the $48.5 billion worth of loans are pegged to inflation, meaning it rose 7.1 per cent last year.
Instead, the loans are set to be indexed by either national wage growth or the consumer price index.
The annual figure will be decided on whichever of the two is lower.
The new indexation will now be backdated to last year.