HECS RELIEF AND COST OF LIVING SUPPORT FOR STUDENTS

More than 16,200 people in the electorate of Macquarie will have their student loan reduced after a decision by the Albanese Government to wipe $3 billion in student debt.

In addition, the Government will establish a Commonwealth Prac Payment to support students undertaking mandatory work placements required for university and vocational education and training qualifications.

The new payment will provide around 68,000 eligible teaching, nursing, midwifery and social work university students and over 5,000 VET students each year with $319.50 per week during their clinical and professional placement periods.

Federal Member for Macquarie, Susan Templeman, said the two initiatives provide cost-of-living relief for many students and ex-students.

“These are two issues that have been raised with me by students and their parents across the Blue Mountains and Hawkesbury, and I’m pleased that our voices have been heard,” Ms Templeman said.

“Like many parents of adult children, I have seen firsthand the pressures last year’s indexation of student debt created, because it was based on inflation, and also the challenges my son faces when he does his teacher trainer placements,” she said.

“The indexation rate for HECS and HELP debts will now be capped at the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI), backdated to June 2023.

“Everyone will receive a credit on their debt, and someone with a HELP debt of $26,000 will see around $1200 wiped from their loans, pending the passage of the legislation.”

The new support for prac students will being in July 2025.

Benchmarked to the single Austudy per week rate, this payment will be means-tested and available from 1 July 2025 and will be in addition to any income support a student may also receive.

“With the majority of students and workers in these critical care fields being women, the payment also helps implement the Government’s gender equality strategy, Working for Women. The payment will also help support the pipeline of social workers available to support those affected by family, domestic and sexual violence,” Ms Templeman said.

“I’ve heard about the cost of living stress that students face with unpaid, mandatory placements and that’s why we’re acting.

“This will help encourage more students to study teaching, nursing and social work – all of which are critical to our local workforce and community in Macquarie.”

Quotes attributable to Minister for Education Jason Clare:

“This will give people who have signed up to do some of the most important jobs in this country a bit of extra help to get the qualifications they need.

“Placement poverty is a real thing. I have met students who told me they can afford to go to uni, but they can’t afford to do the prac.

“Some students say prac means they have to give up their part-time job, and that they don’t have the money to pay the bills.

“This is practical support for practical training.”

Quotes attributable to Minister for Skills and Training, Brendan O’Connor:

"This prac payment is in addition to the Government's investment in Fee-Free TAFE which is supporting thousands to gain Division 2 nursing qualifications and helping to address skills shortages in aged and health care.

"This is an additional payment to support nursing TAFE students who have extra costs such as uniforms, travel, temporary accommodation or child care, during mandatory clinical placements.

"We are making it more accessible for people right across the country for people to get the skills they need to attain jobs in areas of high demand."