Student debts slashed for thousands of Bendigonians

MORE than 17,100 people with a student debt in the Bendigo electorate and millions more around the country will have a further 20 per cent wiped from their amount owing, equating to an average of $5755 per student or graduate in Victoria.

The changes apply to HELP, VET Student Loan, Australian Apprenticeship Support Loan and various other student support loans.

The minimum threshold for repayments will also be lifted by more than $10,000 a year, from about $54,000 to $67.000.

For a person on an income of $70,000, this will mean they will pay around $1300 less per year in repayments.

This builds on the Federal Government’s reforms to fix the student loan indexation formula, which has eliminated around $3 billion in student debt.

Federal Member for Bendigo Lisa Chesters said cutting student loan debts will make a world of difference to people in Bendigo currently paying off a student loan.

“People should be able to further their studies without worrying about it impacting their ability to start a family, buy a home or plan for the future,” she said.

Minister for Education Jason Clare said this is a game-changer for more than three million Australians.

“Last year we wiped (several) billion in student debt and this is the next step,” he said.

“All up, it means we are wiping close to $20 billion in student debt.”

Calculate how much your amount owing may be reduced on the Department of Education website.