An expert criticized the Australian Greens Party’s call to abolish indexation on student debts, stating that it would be unfair to many Australians who did not attend university and whose taxes fund these degrees. The expert emphasized the importance of indexation in protecting Australian taxpayers from losses in the student loan program.
The Greens recently renewed their push to eliminate indexation on student debts following a new analysis. However, the expert highlighted that indexation is crucial for safeguarding taxpayer interests. According to projections released by the Greens, HECS debt for approximately 3 million students in Australia is expected to increase by 4.2 to 4.8 percent due to indexation.
The party forecasted a significant surge in total student debts, estimating an increase of 16 percent or $12.3 billion. Greens Deputy Leader Mehreen Faruqi expressed concern over the escalating student debts and called on the Labor government to abolish indexation to make university and TAFE education free for all Australian students.
In response, Prime Minister Anthony Albanese acknowledged the benefits of the HECS program in increasing university participation but recognized the need for improvements to address rising student debts. Meanwhile, the expert cautioned against abolishing indexation, stating that it would be detrimental to the national interest and unfair to taxpayers who did not attend university.
Instead, the expert suggested implementing a marginal repayment rate system and lowering the HECS repayment threshold to alleviate students’ debt burden. This approach aims to ensure graduates make repayments based on their income above the threshold, preventing debt escalation over time. By addressing the cost of living and implementing targeted repayment strategies, the expert believes that a more sustainable solution can be achieved for both taxpayers and graduates. Please rewrite this sentence.
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