Albanese Government to Slash HECS-HELP Debts by 20 Percent

A significant announcement has been made by the recently re-elected Albanese government, promising a 20 percent reduction in HECS-HELP debts for eligible Australians.

This move is expected to provide much-needed financial relief to a large number of Australians who have been struggling to repay their student loans.

The HECS-HELP program, or Higher Education Contribution Scheme, is a loan scheme that allows eligible students to defer the cost of their university education until they begin earning a certain income threshold.

Under the new policy, eligible HECS-HELP debtors will receive a 20 percent discount on their remaining debt, with the government providing a one-off payment to cover the difference.

The discount will apply to all HECS-HELP debts accumulated up until the end of 2022, and the government has estimated that around 450,000 Australians will benefit from the measure.

The average HECS-HELP debt is currently around $30,000, meaning that eligible debtors could see their debt reduced by around $6,000 under the new policy.

The Albanese government has said that the 20 percent discount is part of its commitment to making higher education more accessible and affordable for all Australians.

The move has been welcomed by the higher education sector, with Universities Australia CEO Catriona Jackson saying that it will make a "real difference" to the lives of many Australians.

However, the opposition has criticized the policy, arguing that it will be too costly and that it will disproportionately benefit higher earners.

The government has defended the policy, saying that it is a fair and responsible way to help Australians repay their student loans.

The 20 percent HECS-HELP debt discount is expected to come into effect from January 1, 2024.