The decision of the Australian Government to cut student debts has been welcomed by the Independent Tertiary Education Council Australia (ITECA), the peak body representing independent skills training, higher education, and international education providers.
The Australian Government will cap the higher education HELP indexation rate at the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI) with effect from 1 June 2023. This relief will be backdated to all HELP, VET Student Loan, Australian Apprenticeship Support Loan, and other student support loan accounts that existed on 1 June last year.
"The Australian Government's initiative will be most welcome for the millions of people with student debt struggling to deal with cost-of-living pressures," said Troy Williams, ITECA Chief Executive.
The universal application of the cut to student debt has been welcomed by ITECA.
"ITECA welcomes the fact that this important measure will support students that undertook their studies with independent skills training and higher education providers," Mr Williams said.
In welcoming the move, ITECA said more could be done to support students studying with independent Registered Training Organisations (RTOs) and higher education institutions. One such measure would be to remove the 20% student loan tax (formally referred to by bureaucrats in Canberra by the more innocuous term 'loan fee') that many students taking out an Australian Government loan to study with independent RTOs and higher education providers face.
"It's abhorrent that the Australian Government whacks a 20% student loan tax on the debts of people investing in study to achieve their life and career goals. It's time for the Australian Government to end the student loan tax," Mr Williams said.
ITECA will continue to lobby the Australian Government to end the student loan tax.
