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Indexation becoming a major strain for student loans

May 11 2023 Updated May 11, 2023

Sentinel-Times

2 min read

Federal Greens Senator Mehreen Faruqi introduced the bill to parliament that would see indexation paused and an increase to the payment threshold for student loans, however, the bill was rejected by a senate enquiry.

MARKETED as an interest-free loan for tertiary studies the HECS-HELP and FEE-HELP loans are far from a “free” loan.

Each year the loan is indexed and this year it is predicted that indexation may be as high as seven per cent.

Since 2013, indexation rates have varied between 1.5 per cent and 2.6 per cent each year with the largest increase last year of 3.9 per cent. With an estimated seven pe...