are beginning to receive an early Christmas present in their bank accounts, as the Federal Government issues refunds following changes to student loans.It comes after legislation passed changing the way indexation is applied and calculated.Education Minister Jason Clare took to social media overnight, urging people to check how much had been wiped from their debt.
The Federal Government issues refunds following changes to student loans. (Getty)Last month, the Federal Government announced a total of $3 billion in HECS-HELP debt would be wiped from Australian student debt loans.The indexation change was backdated to June 2023 and those who paid off their HECS debt in 2023 or 2024 after indexation was applied will receive the credit as a refund in their bank accounts – with some receiving theirs today.Previously, it was based on the Consumer Price Index, which caused loans to surge by 7.1 per cent last year. Now, it will be determined by what is lower of the CPI or the Wage Price Index.
Australians with a HECS debt can log onto MyGov to see the credit applied to their loans. (Nine)A message from the ATO said most people would have received their refunds by the end of January."Most people will see these credits on their accounts by the end of January. Some credits will take a bit longer than others to show on the accounts depending on the complexity," the ATO said."If your client's study or training loan account is in credit after the adjustment, this credit will be transferred to the Income Tax account for offsetting (if applicable) and any remaining amount refunded to your client's nominated bank account."The Federal Government has vowed even bigger changes to student debt if Labor wins the upcoming federal election.
