The Australian Government has introduced new legislation to reduce the Higher Education Loan Program (HELP) debt by 20%.
Once legislation passes the reforms will deliver:
- A one-off 20% reduction in HELP and student loan balances, effective from 1 June 2025
- Lower repayment amounts, making it easier to manage ongoing costs
- Higher income thresholds before repayments are required, allowing graduates to keep more of their earnings
The ATO will retrospectively apply the 20% reduction and the indexation that was applied will be adjusted.
For more information visit: FAQs - 20% reduction off all outstanding HELP loan debt