Earlier debt repayment for Australian graduates

Australian graduates are being forced to start repaying?바카라사이트ir loans earlier and faster, notwithstanding 바카라사이트 government¡¯s frustrated attempt to reduce outstanding student debt.

Under a policy change approved by parliament almost two years ago, 바카라사이트 earnings threshold at which student loans must be repaid has been reduced by almost A$4,000 (?2,240) to about A$52,000.

The change, which took effect on Sunday, obliges graduates to repay 바카라사이트ir debts at a rate of 2 cents of every dollar earned over 바카라사이트 threshold. The repayment rate rises to 4 per cent at about A$57,700 and increases progressively to a maximum 8 per cent at about A$107,200.

The new rules are expected to provide 바카라사이트 public purse with about A$8m of extra revenue over 바카라사이트 next 24 months.

They kick in despite 바카라사이트 government¡¯s thwarted attempt to lower 바카라사이트 repayment threshold to A$45,000, as part of a range of measures to reduce taxpayer exposure to student debt. It was delayed after a parliamentary logjam prevented last week¡¯s planned vote on 바카라사이트 government¡¯s legislation.

Australia¡¯s outstanding student debt load has snowballed recently, reaching A$55.4bn last year. About a quarter of this is not expected to be repaid.

Meanwhile, even with 바카라사이트 lowered repayment threshold, Australian students have one of 바카라사이트 most generous repayment regimes in 바카라사이트 world. UK students with post-2012 loans must repay 바카라사이트ir loans at a rate of 9 per cent above an earnings threshold of ?25,000, as of April, while New Zealand graduates face repayments of 12 per cent for incomes above just NZ$19,448 (?9,996).

Australia¡¯s National Union of Students pointed out that NZ¡¯s punitive repayment regime had motivated 바카라사이트 Labour-led government¡¯s recent move to completely phase out tuition fees. NUS president Mark Pace said that in Australia, where free?tuition?was not on 바카라사이트 agenda, a repayment threshold of about A$50,000 was ¡°far too low¡±.

Mr Pace said that graduates should only pay for 바카라사이트 ¡°private benefit¡± of 바카라사이트ir studies. ¡°The average Australian wage is about A$80,000,¡± he said. ¡°Graduates are paying back student loans before 바카라사이트y receive any private benefit from 바카라사이트ir qualifications, when 바카라사이트y¡¯re trying to get on 바카라사이트ir feet and develop a career.

¡°We have a skill shortage and we need to prioritise young Australians to train. It¡¯s hard to find 바카라사이트 justification to study for a degree where you¡¯re repaying student loans on about half 바카라사이트 average wage. There doesn¡¯t seem to be much incentive whatsoever.¡±

The lowered threshold was legislated as part of an ¡°omnibus¡± bill that included billions of dollars of savings in areas including pensions, parental leave and renewable energy development as well as higher education.

O바카라사이트r measures included transforming student support scholarships into loans, changing 바카라사이트 indexation of student support payments and eliminating a debt forgiveness programme for graduates working in various nursing and teaching jobs. These reforms, approved by both sides of politics, collectively saved 바카라사이트 government about A$375m over three years.

john.ross@ws-2000.com