Independent Higher Education Australia (IHEA) has provided a submission to the Senate Education and Employment Committee on the Education and Other Legislation Amendment (Abolishing Indexation and Raising the Minimum
Repayment Income for Education and Training Loans) Bill 2022.
On 1 December 2022, the Senate referred the respective Bill 2022 Committee for inquiry and report by 17 April 2023.
IHEA's submission supports the Bill - in principle - as it puts students first and is consistent with IHEA’s ongoing advocacy for a more equitable tertiary student loan scheme. However, IHEA highlights this Bill amends minimum loan repayment thresholds without implementing equitable tertiary student funding settings for all Australian students. The Bill proposes to remove indexation and raise minimum repayment thresholds (to the median wage), which is a good outcome for students given current pressing economic conditions. While the Bill before the Senate Education and Employment Committee (the Committee) is contextually positive for students, further amendment is required to ensure all tertiary students are treated fairly and equitably under Government funding arrangements.
Students who study at an Independent higher education provider are still required to pay a 20% loan administration fee (tax) above and beyond their student debt loan amount.
IHEA calls for equitable loan fee settings for all tertiary students. Read more below.
Thank you to IHEA members who provided feedback on this submission.
This was submitted on 24 February 2023.
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