Economists welcome student debt repayment changes but say government could do better for students than slash HECS debt
4 months, 2 weeks ago

Economists welcome student debt repayment changes but say government could do better for students than slash HECS debt

ABC  

The federal government's plan to overhaul student loan repayments has received a mixed reception from economists, who say it misses the major problem with higher education costs. "Some people are paying part of their HECS debt when they don't have enough income to justify it, so that's the most important thing," the emeritus professor said. Dr Jackson said, from a fiscal perspective it was easy to see why the announcement was made — the debt relief was "off-budget" and therefore did not affect the government's underlying cash balance. Professor Holden said the most effective change the government could make would be to remove the former Coalition government's "Job-Ready Graduates Program". 'It's vote buying' Mr Thrower also noted that the 20 per cent reduction in student debt would disproportionately benefit higher-income earners, who had incurred higher debts from expensive degrees.

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History of this topic

Biden cancels $4.28 bn more in student debt before leaving office
3 months ago

Biden cancels $4.28 bn more in student debt before leaving office

Raw Story  

U.S. President Joe Biden said Friday he was canceling student loans for an additional 55,000 Americans, which would amount to wiping out $4.28 billion in debt in his final month in office. US Secretary of Education Miguel Cardona said in a statement that Friday's approval brings the total amount secured during Biden's four years in office to "nearly $180 billion …

$180 billion and counting: Joe Biden announces fresh cancellation of US student loans during final month in office
3 months ago

$180 billion and counting: Joe Biden announces fresh cancellation of US student loans during final month in office

Live Mint  

US President Joe Biden said Friday he was canceling student loans for an additional 55,000 Americans, which would amount to wiping out $4.28 billion in debt in his final month in office. The mass cancellation of debt is for "teachers, nurses, service members, law enforcement officials, and other public service workers who have dedicated their lives to giving back to …

Three-quarters of university graduates have student debts
3 months, 1 week ago

Three-quarters of university graduates have student debts

NL Times  

Almost three-quarters of all people who have completed a university-level education within four years have student debts. Just over half of the students who followed an HBO bachelor's degree have student debt, and only one in five secondary vocational students are in debt. They have to pay an average of 12,500 euros, former HBO students still have to pay 6,300 …

Prime Minister Anthony Albanese has promised to ease HECS-HELP debt but what about this other $2.1 billion 'debt trap' from the 1990s?
4 months, 1 week ago

Prime Minister Anthony Albanese has promised to ease HECS-HELP debt but what about this other $2.1 billion 'debt trap' from the 1990s?

ABC  

The prime minister has promised to ease HECS-HELP debt but now former students caught in a separate 1990s 'debt trap' want their outstanding payments wiped. About 140,000 Australians still owe $2.1 billion from the Student Financial Supplement Scheme, which ran from 1993 to 2003. The Student Financial Supplement Scheme was introduced by the Keating government in 1993. "We were in …

One-off HECS debt cut a placeholder as government looks to change university course fees
4 months, 2 weeks ago

One-off HECS debt cut a placeholder as government looks to change university course fees

ABC  

The federal government has rising university student fees in its sights for the next stage of its university debt overhaul, with a government source saying a one-off 20 per cent cut to debts is an interim measure. "As Jason Clare has said, he's got a very substantial report in front of him, the Universities Accord Report that makes a series …

Western Sydney University reveals massive problem with Anthony Albanese's 'broken' $16billion plan to slash student debt
4 months, 3 weeks ago

Western Sydney University reveals massive problem with Anthony Albanese's 'broken' $16billion plan to slash student debt

Daily Mail  

A university Vice-Chancellor claims Prime Minister Anthony Albanese's plan to reduce student debt does not go far enough in tackling the 'broken' and 'deeply unfair' system. Western Sydney University Vice-Chancellor, George Williams, said the proposed reforms were 'extremely welcome' but warned they did not go far enough in addressing the cause of Australia's 'broken higher education system'. Prime Minister Anthony …

Australia to Cut 20% Student Loans to Ease Cost of Living, Boost Investment
4 months, 3 weeks ago

Australia to Cut 20% Student Loans to Ease Cost of Living, Boost Investment

India Today  

Australian Prime Minister Anthony Albanese has announced a plan to cut 20% of student loans for around three million Australians, wiping around A$16 billion in debts. This move is part of the government's efforts to ease the cost of living, which has been a major concern ahead of the upcoming federal election. The average graduate with a loan of A$27,600 …

Huge change coming to Aussies with HECS debts with $16billion set to be cut from student loans
4 months, 3 weeks ago

Huge change coming to Aussies with HECS debts with $16billion set to be cut from student loans

Daily Mail  

Aussies will have 20 per cent of their student debt wiped under a major new plan set to be announced by the Albanese Government. Aussies will have 20 per cent of their student debt wiped under a major new plan set to be announced by the Albanese Government 'Our whole nation benefits when we make it easier for people to …

Re-elected Albanese government would slash HECS-HELP debts by 20 per cent
4 months, 3 weeks ago

Re-elected Albanese government would slash HECS-HELP debts by 20 per cent

ABC  

Student debts would be slashed by 20 per cent under the latest part of the federal government's election pitch to ease cost of living pressures for young Australians. A university graduate with the average debt of $27,600 would see about $5,520 wiped from their outstanding loan next year under a re-elected Albanese government. The government has framed the policy — …

The HECS threshold is being increased and debts are being lowered but repayment times will take longer for some under a new proposal
4 months, 3 weeks ago

The HECS threshold is being increased and debts are being lowered but repayment times will take longer for some under a new proposal

ABC  

Over the weekend the federal government has announced plans to change student loan repayment rules, spruiking cost of living savings. If the changes pass parliament, people paying their university fees via the government's Higher Education Loan Program won't have to pay as much each year and the overall debt levels will be lowered. Prime Minister Anthony Albanese said they would …

Millions of Aussie students to be hit with debt increase tomorrow - but new law offers a silver lining
9 months, 3 weeks ago

Millions of Aussie students to be hit with debt increase tomorrow - but new law offers a silver lining

Daily Mail  

The average student debt of $26,494 will see an increase of $1,245 Three million students with a HECS-HELP debt will be slugged an increase on what they owe on Saturday. Students will have a 4.7 per cent indexation increase applied to their HECS debt and other higher education loans. Almost three million university students will have their student loan repayment, …

BUDGET 2024: A $300 boost for every Aussie, student debt wiped, tax cuts for millions and major change for overseas travellers: Albanese government hands down latest Budget
10 months, 1 week ago

BUDGET 2024: A $300 boost for every Aussie, student debt wiped, tax cuts for millions and major change for overseas travellers: Albanese government hands down latest Budget

Daily Mail  

Labor has announced major cost of living support for struggling Aussies in a pre-election pitch to Aussies as it tries to win over voters. Treasurer Jim Chalmers handed down the Budget on Tuesday night, boasting of a $9.3 billion surplus driven by a strong labour market and increased commodity prices. Treasurer Jim Chalmers handed down the Budget on Tuesday night, …

HECS-HELP $3 billion budget relief welcomed but debtors hope for further action
10 months, 2 weeks ago

HECS-HELP $3 billion budget relief welcomed but debtors hope for further action

ABC  

In short: Debtors are calling for further HECS relief in next week's budget in addition to the $3 billion wiped from student loans. Last year's 7.1 per cent increase was the largest hike since 1990, leaving some in a debt spiral with loans increasing faster than they could be repaid. Shadow Education Minister Senator Sarah Henderson said student debt would …

HECS indexation to be overhauled in budget with $3 billion in student debt 'wiped out'
10 months, 2 weeks ago

HECS indexation to be overhauled in budget with $3 billion in student debt 'wiped out'

ABC  

In short : Student debts will be lowered for more than three million Australians under reforms designed to stop HECS loans growing faster than wages. Loan indexation will now match whichever is lower out of the Consumer Price Index or the Wage Price Index — which the government says will prevent another shock increase like last year's 7.1 per cent …

Once considered a good 'social policy', students say HECS loans are a burden on an entire generation
10 months, 3 weeks ago

Once considered a good 'social policy', students say HECS loans are a burden on an entire generation

ABC  

When these eleven university students finally don their graduation gowns, they will collectively owe more than $750,000 in tertiary loans. The country collects more in HECS repayments annually than it does in tax from oil and gas, and experts say hiking those taxes could pay down the HECS debt within three years. "It is obscene successive governments say they want …

HECS loans have ballooned in the past decade, leaving many workers caught in a 'student debt spiral'
11 months ago

HECS loans have ballooned in the past decade, leaving many workers caught in a 'student debt spiral'

ABC  

Amy Jolliffe's desperation at her ballooning HECS-HELP debt of $64,000, more than twice the average of $26,494, is emblematic of the growing helplessness felt by many graduates years after they've left university. Many now feel they're in a "student debt spiral" and it shows why calls for change have grown so loud that the prime minister all but confirmed there …

Britain's biggest student debt is £230,000 while another graduate has run up £55,000 in interest alone, new figures show - so how much do you owe?
1 year ago

Britain's biggest student debt is £230,000 while another graduate has run up £55,000 in interest alone, new figures show - so how much do you owe?

Daily Mail  

New figures have revealed that Britain's biggest student debt is more than £230,000, while another graduate has run up nearly £55,000 in interest alone. New figures have revealed that Britain's biggest student debt is more than £230,000, while another graduate has run up nearly £55,000 in interest alone Data released by the Student Loans Company shows that the highest outstanding …

Why is the Biden administration forgiving student debt?
1 year, 5 months ago

Why is the Biden administration forgiving student debt?

Al Jazeera  

US President Joe Biden has announced a new round of federal student loan forgiveness to address the “unsustainable debt” that borrowers accumulate to complete their college education. Student loan repayments restarted this month after being frozen since the COVID pandemic, and the Biden administration has adjusted earlier proposals that were rejected, to help relieve student debt. “It is unconscionable that, …

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause
1 year, 5 months ago

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause

Associated Press  

NEW YORK — Millions of Americans must start repaying their federal student loans again in October, with monthly payments averaging hundreds of dollars. “If they were forgiven out of the blue, I’d be ecstatic.” The Supreme Court in July rejected a plan by President Joe Biden’s administration to wipe away $400 billion in student loan debt. On an earnings call …

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause
1 year, 5 months ago

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. “If they were forgiven out of the blue, I'd …

Supreme Court’s student loan decision will lower US deficit according to new White House projection
1 year, 7 months ago

Supreme Court’s student loan decision will lower US deficit according to new White House projection

Associated Press  

WASHINGTON — The Supreme Court ruling that upended President Joe Biden’s plan to forgive student loan debt changed his budget math, modestly lowering the projected deficit for this year, his budget office reported Friday. The Office of Management and Budget’s Mid-Session Review represents the administration’s first recalculations of the loan program since the court’s June decision, which will affect millions …

Explained | The U.S. student loan crisis and Joe Biden’s new cancellation plan
1 year, 8 months ago

Explained | The U.S. student loan crisis and Joe Biden’s new cancellation plan

The Hindu  

The story so far: United States President Joe Biden has already released a new plan to cancel billions in student loan debt after the conservative majority Supreme Court of the U.S. in a 6-3 decision on June 30 blocked his ambitious plan to cancel $430 billion in debt. The president announced on the day of the Court ruling that the …

Stunned US students start GoFundMe pages after court's debt order: ‘When I heard…’
1 year, 8 months ago

Stunned US students start GoFundMe pages after court's debt order: ‘When I heard…’

Hindustan Times  

Student who are facing crippling debt are turning to GoFundMe in hopes of finding some financial relief through crowdfunding as the US Supreme Court effectively struck down Joe Biden's $400 billion student loan forgiveness program, affecting many students. Education costs have soared in America pushing students into debt crisis as about 43 million Americans have federal student loan debt collectively …

What the Supreme Court's rejection of student loan relief means for borrowers
1 year, 8 months ago

What the Supreme Court's rejection of student loan relief means for borrowers

NPR  

What the Supreme Court's rejection of student loan relief means for borrowers Enlarge this image María Hergueta for NPR María Hergueta for NPR In one of the most anticipated decisions of its current term, the U.S. Supreme Court has struck down President Biden's sweeping plan to discharge some or all federal student loan debt for tens of millions of Americans. …

Education minister open to changes on how indexation applies to HECS-HELP debt
1 year, 9 months ago

Education minister open to changes on how indexation applies to HECS-HELP debt

ABC  

Federal Education Minister Jason Clare has left the door open for changes to how HECS-HELP debts are paid back, including how indexation is applied to the original debt. Key points: The education minister says he is open to changing how HECS debts are indexed Indexation of 7.1 per cent has added $1,775 to the average $25,000 HECS-HELP debt Under the …

Student debt indexation to have lifelong impacts on Australians' borrowing capacity
1 year, 9 months ago

Student debt indexation to have lifelong impacts on Australians' borrowing capacity

ABC  

More than 3 million Australians will see their student debt rise in line with inflation tomorrow, adding more than $1,000 to the average loan and sparking warnings of a lifelong impact on borrowing capacity. Key points: The average $25,000 HECS-HELP debt will rise by $1,775 because of indexation There is more than $74.3 billion in outstanding HECS-HELP debt Debts affect …

As June 1 indexing approaches, Australian university graduates are bracing for increased HECS/HELP debts
1 year, 10 months ago

As June 1 indexing approaches, Australian university graduates are bracing for increased HECS/HELP debts

ABC  

Time is running out for 3 million Australian university graduates to slash their student debts before the federal government's multi-billion-dollar indexing bonanza, the National Union of Students says. While HECS/HELP is essentially an "interest-free" loan, the union said the high inflation environment has caused indexation to spike to one of the highest levels in decades and it has shocked students …

Students and graduates could pay thousands more as HECS and HELP indexation goes ahead
1 year, 11 months ago

Students and graduates could pay thousands more as HECS and HELP indexation goes ahead

ABC  

Students and graduates could see their student loans increase by thousands of dollars, after a Senate inquiry rejected a proposal to freeze indexation on the debts. Key points: Around 3 million Australians have a HECS-HELP debt Some students and graduates could see their overall debt increase due to indexation A Senate inquiry into pausing student debt found the proposal could …

Australia's HECS-HELP debt has topped $74b. How long does it take the average student to pay theirs off?
1 year, 11 months ago

Australia's HECS-HELP debt has topped $74b. How long does it take the average student to pay theirs off?

ABC  

The Australian Tax Office has released the country's 100 largest HELP/HECS debts through a Freedom of Information request – and the highest debt is a whopping $737,000. Mr Marin crunched the numbers on a debt of $50,000 at 5 per cent indexation over 10 years, based on an entry-level income of $60,000 with a 4 per cent yearly pay rise. …

Greens call for abolition of indexing on HECS/HELP loans as student debt balloons, senate report to be tabled
1 year, 11 months ago

Greens call for abolition of indexing on HECS/HELP loans as student debt balloons, senate report to be tabled

ABC  

A senate inquiry report into a bill that would freeze $74 billion in student debt is set to be tabled in federal parliament next week. Key points: The Greens are also pushing for a rise in the minimum repayment threshold Two thirds of submissions received by the senate were from students struggling to repay debt The government says there are …

Growing calls for student HECS-HELP loan indexation to be abolished as inflation sends debts soaring
1 year, 11 months ago

Growing calls for student HECS-HELP loan indexation to be abolished as inflation sends debts soaring

ABC  

Brisbane wealth adviser Alanna Fraser has been battling to pay off a university student debt of $102,000. Key points: The National Union of Students says the federal government is profiting from student loans Annual indexation is causing loan amounts to rise sharply due to high inflation Treasurer Jim Chalmers says the system is fair She's just 26 and fears the …

Quarter of students taking on new debt to cover higher living costs – survey
2 years, 4 months ago

Quarter of students taking on new debt to cover higher living costs – survey

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. If working people are finding things a real struggle, …

Explained | What’s the latest on Biden’s U.S. student loan forgiveness?
2 years, 4 months ago

Explained | What’s the latest on Biden’s U.S. student loan forgiveness?

The Hindu  

The story so far: U.S. President Joe Biden's plan to forgive federal student loans, first announced in August, has been blocked by two legal challenges, clouding the financial future for millions of American students and graduates. The six Republican-run states that have sued to block Mr. Biden's executive order argue he skirted congressional authority and the plan threatens future tax …

Biden’s Student Debt Relief Plan to Cost $400 Billion, Numbers Likely to Fuel Debate Between Dems, GOP
2 years, 5 months ago

Biden’s Student Debt Relief Plan to Cost $400 Billion, Numbers Likely to Fuel Debate Between Dems, GOP

News 18  

US President Joe Biden’s plan to forgive part of the country’s massive student debt burden is estimated to cost the government $400 billion, the Congressional Budget Office said Monday. “CBO estimates that the cost of student loans will increase by about an additional $400 billion in present value” as a result of the debt forgiveness, it said. But a White …

Column: Student debt relief might cost $420 billion. That’s a bargain
2 years, 5 months ago

Column: Student debt relief might cost $420 billion. That’s a bargain

LA Times  

Students at Washington University in St. Louis illustrate the burdens of student debt with a mock ball and chain in 2016. The Congressional Budget Office has released its long-awaited estimate of the cost of President Biden’s student debt relief program, and as expected, it looks like a big number: $420 billion. Second, the CBO’s estimate is of the present-value cost …

CBO: Biden’s student debt plan would cost $400 billion
2 years, 5 months ago

CBO: Biden’s student debt plan would cost $400 billion

Associated Press  

President Joe Biden’s plan for student debt cancellation will cost the federal government about $400 billion over the next 30 years, according to new estimates from the Congressional Budget Office. The Biden administration previously estimated the plan would cost about $24 billion a year over the next 10 years — about $240 billion for the decade — while other estimates …

Student loan crisis awaits new generation despite President Joe Biden's plan
2 years, 6 months ago

Student loan crisis awaits new generation despite President Joe Biden's plan

Firstpost  

The spectre of heavy debt will still loom over current high school seniors — and everyone after them — since the debt cancellation only applies to those who took out federal student loans before 1 July Washington: For millions of Americans, President Joe Biden’s student loan cancellation offers a life-changing chance to escape the burden of debt. She wishes Biden’s …

Biden's Debt Relief Is The Biggest Break For Student Debtors In Decades
2 years, 6 months ago

Biden's Debt Relief Is The Biggest Break For Student Debtors In Decades

Huff Post  

LOADING ERROR LOADING President Joe Biden’s announcement Wednesday that the federal government would cancel a big chunk of student loan debt represents the biggest break student debtors have had in decades. Under the student loan cancellation Biden announced Wednesday, the federal government will cancel as much as $20,000 in debt for current or former student borrowers who also received need-based …

Column: Republicans attacking student loan relief as a taxpayer burden got their own degrees on taxpayers’ dime
2 years, 6 months ago

Column: Republicans attacking student loan relief as a taxpayer burden got their own degrees on taxpayers’ dime

LA Times  

Royce Hall at UCLA, which was free for California students until 1970. President Biden’s student loan relief proposal, including a freeze on payments through the end of the year and forgiveness of $10,000 to $20,000 in loan balances, has elicited predictable cries of outrage from Republicans. ‘A slap in the face to working Americans.’ — Description of Biden’s student debt …

Biden announces relief for indebted U.S. university graduates
2 years, 6 months ago

Biden announces relief for indebted U.S. university graduates

The Hindu  

U.S. President Joe Biden on Wednesday announced that most university graduates still trying to pay off student loans will each get $10,000 in relief, addressing a decades-old headache of massive educational debt across the country. "In keeping with my campaign promise, my administration is announcing a plan to give working and middle-class families breathing room," Mr. Biden said in a …

‘The right thing to do’: Biden announces student debt relief for millions of borrowers
2 years, 6 months ago

‘The right thing to do’: Biden announces student debt relief for millions of borrowers

The Independent  

Sign up for the daily Inside Washington email for exclusive US coverage and analysis sent to your inbox Get our free Inside Washington email Get our free Inside Washington email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Mr Biden said the federal government would resume collecting student loan payments on 1 …

Biden uses GOP tax cuts to clap back at claims student loan plan isn't 'fair' to those who paid
2 years, 6 months ago

Biden uses GOP tax cuts to clap back at claims student loan plan isn't 'fair' to those who paid

Daily Mail  

Joe Biden wouldn't answer on Wednesday the big question of if forgiving $10,000 per borrower is fair for Americans who saved up, worked through college or quickly paid off their loans after school. President Joe Biden insisted Wednesday in a White House press briefing that his plan to forgive lump sums of student debt will not impact inflation While leaving …

Student loan help for millions coming from Biden after delay
2 years, 7 months ago

Student loan help for millions coming from Biden after delay

Associated Press  

WASHINGTON — President Joe Biden on Wednesday is set to announce his long-delayed move to forgive up to $10,000 in federal student loans for many Americans and extend a pause on payments to January, according to three people familiar with the plan. “President Biden’s decision on student debt cannot become the latest example of a policy that has left Black …

Column: Would forgiving student debt drive up inflation? Only if you’re using lousy math
2 years, 7 months ago

Column: Would forgiving student debt drive up inflation? Only if you’re using lousy math

LA Times  

Bernie Sanders and Elizabeth Warren ran against each other for the Democratic nomination for president in 2020, but were in agreement on the need to cancel student debt. The deficit hawks at the Committee for a Responsible Federal Budget, for example, fretted last week that forgiving even $10,000 in student debt per borrower would be so inflationary that it would …

In a turbulent economy, here's how to weather the inflation storm
2 years, 8 months ago

In a turbulent economy, here's how to weather the inflation storm

NPR  

In a turbulent economy, here's how to weather the inflation storm Enlarge this image toggle caption Mark Lennihan/AP Mark Lennihan/AP Groceries, gasoline, rent and outstanding debts, inflation and painful price hikes have many Americans concerned about their financial present and future. "With costs of living rising, I think it's an appropriate conversation to have," De La Rosa said. An important …

Interest on student loans is the 'latest blow' to new graduates
2 years, 9 months ago

Interest on student loans is the 'latest blow' to new graduates

Dutch News  

Student organisations are furious about a potential increase in the interest on loans students who graduate this year are likely to have to pay. The interest rate on student loans, based on the interest on state bonds, is agreed each year for a period of five years and covers the students who graduate that summer. ‘After the empty promises about …

Interest on student loans is the 'latest blow' to new graduates
2 years, 9 months ago

Interest on student loans is the 'latest blow' to new graduates

Dutch News  

Student organisations are furious about a potential increase in the interest on loans students who graduate this year are likely to have to pay. The interest rate on student loans, based on the interest on state bonds, is agreed each year for a period of five years and covers the students who graduate that summer. ‘After the empty promises about …

Student loan forgiveness: How will it affect the economy?
2 years, 10 months ago

Student loan forgiveness: How will it affect the economy?

LA Times  

Before deciding to cancel up to $10,000 of federal student loan debt, President Biden and his administration had been wrestling with the issue for months. They range from mega-loans for Harvard Business School degrees that yield Wall Street jobs with mega-salaries, to much smaller amounts borrowed to pay for vocational training that often proved almost worthless, if not an outright …

Poorer graduates ‘to be hit even harder by student loan threshold change’
3 years ago

Poorer graduates ‘to be hit even harder by student loan threshold change’

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

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