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Increased thresholds for student loan repayments.



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Media Centre

Media Release

Increased thresholds for student loan repayments

22 March 2007

The Minister for Education, Science and Training, the Hon Julie Bishop MP, today announced an increase in the repayment threshold for the Higher Education Loan Programme (HELP), effective from 1 July 2007.

“In 2007-08, people with a HELP debt who earn $39,825 or more will be required to begin repaying their debt interest-free loan through the taxation system,” Minister Bishop said.

“Repayments start at four percent of a person’s annual income and, even at high incomes, do not exceed 8%. Weekly income would need to be more than $765 before repayments need to be made, with repayments of around $30 a week at that income.

“The Australian Government has progressively increased the minimum threshold for repayment from $25,348 in 2003-04 to $39,825 in 2007-08.

“People with HELP loans benefit from the favourable income-contingent repayment arrangements that the Australian Government has put in place.

It is one of the fairest student loan schemes in the world. There is no requirement for people to repay until they are able to do so and if they never reach that threshold, taxpayers, through the Australian Government carries the cost.” Minister Bishop said.

The Australian Government also provides a bonus of 10% to people who choose to make a voluntary repayment of their HELP loan of $500 or more.

More information about HELP is available at: http://www.goingtouni.gov.au

Minister Bishop’s Office: Tory Vidler 0414 228 727 Dept of Education, Science and Training: Media Unit 02 6240 7300