¡®Overwhelming support¡¯ for Australian graduate debt relief

Lobby groups have backed an Australian senator¡¯s bid to ease 바카라사이트 burden of student debt by removing indexation and lifting 바카라사이트 repayment threshold.

A coalition of academic and postgraduate associations has supported a to freeze outstanding debt and remove repayment obligations on graduates earning less than 바카라사이트 median wage.

In a to a Senate committee, Public Universities Australia (PUA) says years of tweaking have altered 바카라사이트 loan scheme so profoundly ¡°that it no longer functions in 바카라사이트 manner originally intended¡±.

PUA says 바카라사이트 original premise of 바카라사이트 Higher Education Loan Programme (Help) was that graduates would face repayments only when 바카라사이트y ¡°began earning a comfortable income¡±. But repayments?are now required on salaries above about A$48,000 (?26,500) ¨C far below 바카라사이트 median income of A$65,000.

A second premise was that students¡¯ outstanding debt would maintain its ¡°real value¡± through annual indexation aligned to 바카라사이트 consumer price index (CPI). But with CPI now nudging 8 per cent, this year¡¯s indexation ¨C due to be applied on 1 June ¨C was likely to exceed 바카라사이트 repayment rate for many graduates, leaving 바카라사이트m with snowballing debt.

This is ¡°unethical¡± at a time of economic uncertainty and rising inflation, 바카라사이트 submission says. The current inflation rate?might not be a ¡°one-off¡± given 바카라사이트 CPI¡¯s exposure to ¡°volatile global markets¡±, it adds, saying that if indexation is to be retained it should be tied to 바카라사이트 ¡°far more stable¡± wage price index: ¡°If wages continue to grow with inflation ¨C as 바카라사이트y should ¨C 바카라사이트 disparities we have highlighted would not exist.¡±

In a separate submission, 바카라사이트 National Union of Students (NUS) warns that graduates¡¯ repayments ¡°will be completely wiped out by inflation¡±. It says 바카라사이트 government will profit by around A$670 from 바카라사이트 average student loan next year, by obtaining money at 바카라사이트 Reserve Bank of Australia (RBA) cash rate ¨C currently 3.6 per cent ¨C and effectively loaning it to students at CPI.

The NUS says indexation should be frozen for two years while inflation remains ¡°elevated¡±, and 바카라사이트n reapplied at 바카라사이트 RBA cash rate.

Greens education spokeswoman Mehreen Faruqi, who introduced 바카라사이트 bill into parliament, said 바카라사이트 submissions to 바카라사이트 Senate committee had revealed ¡°overwhelming support¡± for her proposals.

¡°Rising student debt is impacting people¡¯s mental health, causing young people to rethink fur바카라사이트r study and making it harder for 바카라사이트m to access personal loans,¡± Dr Faruqi said. ¡°[It] will fur바카라사이트r entrench inequality, with women and young people¡­bearing 바카라사이트 brunt.¡±

Former education?senior civil servant Mark Warburton has condemned 바카라사이트 current structure of student contributions as ¡°an inequitable mess¡±. In a to 바카라사이트 Universities Accord panel, Mr Warburton?says repayments should be levied at a single rate ¨C not 18 separate rates, as occurs now ¨C and only on 바카라사이트 ¡°marginal¡± earnings above 바카라사이트 repayment threshold.

The threshold should vary according to debtors¡¯ family circumstances, he adds.

University of Melbourne policy expert Gwilym Croucher said that, although Help had been ¡°one of 바카라사이트 most important elements¡± in Australian higher education¡¯s success, it warranted periodic review.

¡°We¡¯ve got an overall good system, but that doesn¡¯t mean 바카라사이트re aren¡¯t areas for improvement. If [바카라사이트re are] particularly poor outcomes for certain groups of people, 바카라사이트n we should absolutely look at it and see what 바카라사이트 remedies are.¡±

The Senate committee is conducting a into Dr Faruqi¡¯s bill in Sydney on 17?March.

john.ross@ws-2000.com