The Country Women’s Association of Victoria will hold its state conference this Friday and call on the Federal Government to remove the indexation on HECS loans.
Over 400 women will attend the state conference to debate HECS loan indexation, among other advocacy priorities of the group, such as homelessness and women’s safety.
State President Jennifer Nola expressed concerns about a short-term fix that would ultimately do little to support young people.
“The removal of indexation would enable young tertiary students to repay their debts more quickly and be able to prioritise saving for their own home,” she said.
“I’m not opposed to student contribution to the cost of education, but indexing those loans has led to young people becoming increasingly despondent about achieving the long-standing Australian dream of owning a home.
“We’ve already got a housing crisis, and if that debt is included, these young people who’ve spent years at university getting an education can’t get a loan.”
Changes announced on May 5, 2024, changed how university loans are indexed to prevent rises like the combined 15.7 per cent over the last three years and wiped $3 billion in student debt for three million Australians.
Once legislation passes, indexation rates will be matched to whichever is lower out of the consumer price index or the wage price index from June 1, 2023, ensuring outstanding amounts rise with inflation but do not outgrow wages.
Ms Nola expressed concerns that this announcement failed to address a long-term solution for the growing student debt and its effects on young graduates.
“It’s not clear what the long-term position on this will be,” she said.
“Is this just a short-term fix or bandaid measure?
“While it is greatly appreciated by those struggling currently, we’re calling for a long-term position and solution on this.”
Mrs Nolan encouraged young people to join their local CWA branches to support the cause.
“The more people we have as members, the more powerful our advocacy can be.”
CWA has multiple branches throughout the Goulburn Valley.
To get in contact, visit the CWA website: cwaofvic.org.au/about/become-a-member
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