Main Points:
- Zoe Davidson (QUT Guild President) writing to Parliament on behalf of the QUT Guild in support of decreasing the financial burden of being a student with immanently-looming and crushing debt.
- This is in relation to the Federal inquiry of the Education and Other Legislation Amendment (Abolishing Indexation and Raising the Minimum Repayment Income for Education and Training Loans) Bill 2022. This Bill has been introduced by the Greens Deputy Leader and Education spokesperson, Senator Mehreen Faruqi.
- Complete this survey to assist in the submission to Parliment.
How does this Bill affect YOU?
Abolishing Indexation:
As you complete your degree and land your 'real world' job, your HELP/HECS/ABStudy/VET/SFSS debt will grow exponentially because of indexation. Indexation allows the Government to increase the size of your debt to stay 'relevant' to inflation and cost of living. So, while these loans we incur are interest free, they are currently indexed to inflation - therefore, if cost of living increases, so does your level of debt from where it originally was the day you enrolled in that class.
Ultimately, indexation makes it even harder for students to pay off their tertiary education when the cost of living is rising asynchronously to level of income and the lifestyle choices of our generation (i.e., work/life balance, socio-economic desires/factors).
As HELP debt is gradually diverted by your employer to minimising your debt (in the first instance), if you're not making well beyond your means, chances are that it'll take years to completely finish paying off (we're talking another 10+ years opposed to those who have graduated 2-5 years before us).
Honi Soit, University of Sydney Student Magazine, notes an increase of $1847 to your HELP debt if inflation reaches 7.8% by 1 June 2023 - just from indexation.
Abolishing indexation ensures the degree you attract debt for today, will remain at the same price tomorrow.
Raising Minimum Repayment Income:
Depending on your income bracket, the level of repayment on your HELP debt will fluctuate – the more you earn, the higher the rate will be for paying back your loans. In 2017-2018 (when I started my degree), the limit was $55,874, however in 2022-2023, it is now $48,361.
With the minimum repayment threshold decreasing by over $7,000 in 5 years, tertiary students are being pushed to start paying loans back earlier – but don't forget to also budget for increased electricity, food, water, internet bills while also struggling to balance work/study/life.
Raising, instead of decreasing, the minimum repayment threshold ensures you a chance for fresh air in living your life, and not thinking every second about the next paycheck.
So, what needs to be done?
Zoe Davidson is asking for your help in gaining qualitative data and experiences from QUT students to assist with the submission.
Anything and everything is useful – cost-cutting measures, experiences in being approved for a rental, inventive cooking because everything is too expensive, living hours away from uni because you can't afford to be closer, working multiple jobs.
Your experiences will directly assist in ensuring federal decisions impacting our education experience are enacted to QUT Student's benefit.