How do we protect students from ballooning HELP debts? A fixed maximum indexation rate would help

By Andrew Norton, Professor in the Practice of Higher Education Policy, Australian National University

The indexation of student debt is arguably the federal government’s biggest political problem when it comes to universities.

Last June, student debt balances increased by 7.1%, the highest rate in decades. While HELP loans do not attract interest, they are indexed to inflation as measured by the Consumer Price Index (CPI).

When inflation remained low, this was not an issue for those with…

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