Proposed changes for study and training loans
The government has announced proposed changes for study and training loans.
Repayment system changes
The government has proposed changes to the repayment system to take effect from 1 July 2025 subject to the passage of legislation.
- The minimum repayment threshold will change from $54,435 in 2024–25 to $67,000 in 2025–26.
- HELP repayments will only be calculated on the income above the new $67,000 threshold instead of the total annual income.
For more information, see the Department of Education websiteExternal Link.
20% loan reduction
The government has proposed a reduction to the balance of all study and training support loans by 20%, to take effect before 1 June 2025 subject to the passage of legislation.
For more information, see 20% reduction of student loan debtExternal Link on the Department of Education website.
Indexation rate calculation change
The government announced that it will cap the HELP indexation rate to be the lower of either the consumer price index (CPI) or wage price index (WPI). This change will take effect when it becomes law.
This relief will be backdated to all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other study or training support loan accounts that existed on 1 June 2023.
The Department of Education have released:
- Higher Education Loan Program (HELP) – Indexation Credit EstimatorExternal Link
- FAQs for HELP Indexation CreditExternal Link.
Indexation was applied based on the CPI on 1 June 2023 and 1 June 2024. After the law has changed, we will process adjustments to reflect the lower indexation amounts for these years and credit the amount to your study or training support loan. You don’t need to do anything.
Where your study loan is less than $0 after the adjustment, you may receive a refund for the excess amount to your nominated bank account – if you have no outstanding tax and other government debts.
Trade Support Loan, now Australian Apprenticeship Support Loan
From 1 January 2024, a Trade Support Loan (TSL) is known as an Australian Apprenticeship Support Loan (AASL)External Link.
The name change was included in the Trade Support Loans Amendment Act 2023External Link that amends the Australian Apprenticeship Support Loans Act 2014External Link. It received royal assent in August 2023. This brought changes to the existing TSL program (which was introduced in 2014).
The TSL program provided income-contingent loans to eligible apprentices to help with everyday costs while completing their apprenticeships. The AASL program expands access to these loans to a broader range of apprentices and trainees, including non-trade occupations. A new Australian Apprenticeship Priority List replaces the TSL Priority List.
Early childhood, aged care and disability are examples of sectors that may benefit from this expansion.
For more information, go to the Department of Employment and Workplace Relations Australian Apprenticeship Support LoansExternal Link page.
HELP loan reduction for rural doctors and nurse practitioners
On 10 November 2022, the Australian Government introduced a bill into parliament to establish the HELP for Rural Doctors and Nurse Practitioners initiativeOpens in a new window to encourage doctors and nurse practitioners to live and work in rural, remote or very remote areas of Australia.
The Higher Education Support Amendment (2022 Measures No. 1) Act 2023 (the Act) amends the Higher Education Support Act 2003. The Act received royal assent on 20 February 2023.
The initiative gives doctors and nurses the opportunity to reduce their outstanding Higher Education Loan Program (HELP) loanExternal Link if they meet:
- the eligibility criteriaExternal Link
- their obligationsExternal Link to complete the required amount of eligible work in specified areas.
For more information, contact the Department of Education at veryremotehelp@education.gov.au