<?xml version="1.0" encoding="ISO-8859-1"?> <docID>334120</docID> <postdate>2024-11-27 11:25:41</postdate> <headline>Thousands wiped off student debt in pre-Christmas gift</headline> <body><p><img class=" wp-image-334121" src="https://citynews.com.au/wp-content/uploads/2024/11/20240404001926938713-original-2.jpg" alt="" width="673" height="449" /></p> <caption>People with an average student debt will have $1200 wiped from their slate under new rules. (Joel Carrett/AAP PHOTOS)</caption> <p class="wire-column__preview__author"><span class="kicker-line">By <b>Tess Ikonomou and Kat Wong</b> in Canberra</span></p> <p><strong>Millions of university graduates and students will soon wake up to an early Christmas present after the government wiped thousands of dollars off their debts.</strong></p> <p>Laws to cap the indexation rate for the Higher Education Loan Program at either the rate of inflation or the wage price index - whichever is lowest - passed federal parliament late Tuesday night after Australians were stung with a 7.1 per cent increase to their student debts in 2023 because of surging inflation.</p> <p>The indexation changes will lead to $3 billion in debt being cleared over coming weeks.</p> <p>"University is a lot more expensive today than when I was at university," Education Minister Jason Clare told reporters in Canberra on Wednesday.</p> <p>"Wiping $3 billion in debt will fix that spike in inflation that happened last year and it'll make sure that never happens again."</p> <p>People with an average HELP debt level will get a $1200 reduction on their loans.</p> <p>Those with a debt of $45,000 will get a decrease of about $2000, while students with $60,000 owning will have debt lowered by $2700.</p> <p>The changes were recommended in the university accords, a review of the tertiary education sector handed down in February.</p> <p>The laws mean university students completing placement will receive payments to help with living costs from July 2025.</p> <p>Students in degrees including teaching, nursing, midwifery and social work will receive an allowance of $319 per week.</p> <p>The reforms were a big win for students and graduates at a time when many Australians were struggling with the high cost of living, Universities Australia chief executive Luke Sheehy said.</p> <p>Though universities have celebrated these measures, other government proposals for the sector have been widely spurned.</p> <p>Labor has attempted to implement a cap on the number of foreign student arrivals from 2025.</p> <p>The reform would be used in place of an immigration rule known as ministerial direction 107, that has throttled student visas.</p> <p>Swinburne University of Technology vice-chancellor Pascale Quester has urged the government to replace the ministerial direction and prioritise visa processing for enrolments in science, technology, engineering and mathematics courses - collectively known as STEM subjects.</p> <p>The number of domestic students taking these courses has dropped steadily, while international student interest has increased by 39 per cent since 2021.</p> <p>"Forget a brain drain, we are at risk of a brain drought," Professor Quester said.</p> <p>"There is so much STEM talent in the region, but we have slammed the door in their faces with hastily-crafted policy."</p> <p>The government is also expected to slash a further 20 per cent off Australians' student debt if it wins the federal election in 2025.</p> </body>