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Changed conditions for Australian student loans

On 13 August this year a new legislation to lower the repayment threshold for student loans passed the Australian senate. What this means for both, current students and graduates, is that they will have to start paying off their student loans known as the Higher Education Contribution Scheme (HECs)Higher Education Loan Program (HELP) at a higher speed. This reform that will come into force from 1 July 2019 and it will affect students and graduates alike that have an income of caEUR28 ,000€ (ca A$ UD 45 .000) or more, a decrease from comparing to the previousthe current threshold of ca EUR 352 ,000€ (ca AUD$ 55 .000). This means that both graduates and students have to start paying once they reach this threshold, even if the later are still studying. It is also important to note that one pays a percentage of their total income not a percentage of their debt, hence the amount you pay rises as you make more money. The bill envisages repayment based on a percentage of the annual income The Australian Government believes that this law will and prevents students from accumulating debts larger than ca EUR 65 ,000€ (ca AUD$104 .400). 


As reported by the Australian government, referencing the Department of Education and Training (DET), ‘[i]n 2015 and 2016, 88% of Commonwealth supported students deferred their payment through HECS-HELP’. The same source reports a total outstanding HELP debt of almost AUD 50 billion in the year 2015-16. 

More information can be found here