>**What’s changing with Hecs?**
>
>If the legislation passes, 20% of student debt will be wiped from the 3 million Australians with outstanding loans, equivalent to about $16bn, according to the federal government.
>
>The minimum repayment threshold will also be raised from $54,000 to $67,000, which is expected to save the average debt holder about $680 a year, and reduce the amount low income earners have to pay.
>
>[…]
>
>The education minister, Jason Clare, on Wednesday said the average Australian with a student debt would have about $5,500 shaved off their loans. For Australians on an average income of $70,000, he said the bill would reduce the minimum amount they were required to repay by about $1,300.
>
>[…]
>
>**Will the bill really ease the cost of living?**
>
>[…]
>
>Analysis conducted by the parliamentary library for the Greens and provided exclusively to Guardian Australia shows the 20% cut will be reduced to just 8% since Labor entered office when accounting for indexation since the 2022 election.
>
>For instance, a student debt balance of $30,000 in 2022 would have risen to $33,454 before the student debt reduction as a result of indexation. After the 20% cut, it would drop to $26,763, and with 2025 indexation, rise to $27,619 – just 7.9% less than in 2022. The modelling assumes no repayments had been made.
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Excerpt:
>**What’s changing with Hecs?**
>
>If the legislation passes, 20% of student debt will be wiped from the 3 million Australians with outstanding loans, equivalent to about $16bn, according to the federal government.
>
>The minimum repayment threshold will also be raised from $54,000 to $67,000, which is expected to save the average debt holder about $680 a year, and reduce the amount low income earners have to pay.
>
>[…]
>
>The education minister, Jason Clare, on Wednesday said the average Australian with a student debt would have about $5,500 shaved off their loans. For Australians on an average income of $70,000, he said the bill would reduce the minimum amount they were required to repay by about $1,300.
>
>[…]
>
>**Will the bill really ease the cost of living?**
>
>[…]
>
>Analysis conducted by the parliamentary library for the Greens and provided exclusively to Guardian Australia shows the 20% cut will be reduced to just 8% since Labor entered office when accounting for indexation since the 2022 election.
>
>For instance, a student debt balance of $30,000 in 2022 would have risen to $33,454 before the student debt reduction as a result of indexation. After the 20% cut, it would drop to $26,763, and with 2025 indexation, rise to $27,619 – just 7.9% less than in 2022. The modelling assumes no repayments had been made.