How the two major parties shape up on debate around student loan reform

Whichever party wins the 2 July election, changes to the Higher Education Loan Programme (HELP) scheme are on their way. Both parties support lowering the threshold for starting repayment, although by different amounts. Both would abolish HELP debt reductions for some teaching and nursing graduates. But the Liberals are floating more radical ideas for fixing HELP’s financial problems. The May budget estimated HELP’s 2016-17 costs at A$2.6 billion, mostly in interest subsidies and debt not expected to be repaid, commonly called doubtful debt. A Parliamentary Budget Office report forecasts rapid escalation of these costs. This is why HELP reform is on the political agenda