On 29 July, the Australian Bureau of Statistics announced that the Consumer Price Index (CPI) fell 1.9 per cent in the June 2020 quarter, the largest fall in its 72-year history.
For people with an outstanding Higher Education Loan Program (HELP) or similar student loan debt, indexed using CPI, this raises questions about whether the debt will be reduced in line with the CPI reduction.
While there is no immediate effect from the June 2020 quarter fall, the indexation arrangements for outstanding HELP debts, which are intended to maintain the real value of the debt, could result in reduced loan balances in June 2021, depending on CPI movements over the next three quarters.
I... Read more...
On 11 June 2020 the Minister for Education, Dan Tehan, introduced the Education Legislation Amendment (2020 Measures No. 1) Bill 2020 (the Bill) to the House of Representatives.
The main purpose of the Bill is to give effect to a six‑month exemption from FEE‑HELP loan fees announced on 12 April 2020 as part of the Higher Education Relief Package (the relief package) in response to the COVID-19 pandemic.
The other elements of the relief package do not require legislation. A loan fee exemption for VET Student Loans (VSL) was also included, but has already been given effect by the VET Student Loans Amendment Rules (No. 1) 2020, made under the VET Student Loans Act 2016 (VSL Act)... Read more...
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