Western Sydney University reveals major problem with Anthony Albanese’s ‘broken’ $16 billion plan to reduce student debt

A university vice-chancellor claims Prime Minister Anthony Albanese’s plan to reduce student debt does not go far enough in tackling the ‘broken’ and ‘deeply unfair’ system.

On Sunday, Albanese pledged to eliminate 20 percent of existing student debt and reform payments, in a bid to ensure the education system becomes “better and fairer.”

About $16 billion in student debt would be deducted from existing student loan bills starting next June, meaning the average HELP debt of $27,600 would be reduced by about $5,520.

The reforms would also increase the reimbursement threshold from $54,000 to $67,000 and reduce the reimbursement rate.

Western Sydney University vice-chancellor George Williams said the proposed reforms were “extremely welcome” but warned they did not go far enough in addressing the root cause of Australia’s “broken higher education system”.

“We continue to call for immediate action to tackle the root of the debt spiral problem,” he said.

‘The system for determining student fees is broken and very unfair in the first place. Today’s changes do nothing for new college students who face high tuition costs.”

Professor Williams called for “a common sense and fair approach” to the cost of university degrees, some of which are so expensive that students are “priced out” if they do not want to follow their dreams.

“The fact that a three-year arts degree now costs $50,000 actively discourages some students from considering or staying in college,” he said.

“We need action on all fronts: student loan repayment and the overall cost of degrees.”

Professor Williams noted that arts degrees have been an entry point to tertiary study for indigenous, low socio-economic, first-in-family and female students.

“Students cannot wait for a yet-to-be-established Australian Tertiary Education Commission that could potentially address the high cost of arts and humanities courses. We must now resolve this unfinished business,” he said.

Albanese’s proposed reform would apply to all higher education loan programs, vet student loans, Australian Apprenticeship Support Loans and other means-tested student loans.

The Prime Minister said the legislation would be introduced in June next year if Labor is re-elected in the upcoming federal election.

“It helps everyone pay off student debt now, and it also gives every student a better deal in the coming years,” the Prime Minister said on Sunday.

“This is about putting money back in your pocket and bringing intergenerational equity back into the system.”

The student debt plan was criticized by Coalition senior senator Simon Birmingham, who argued it was not “real reform” and accused Mr Albanese of trying to mislead young Australians.

“This does not change the tuition fees that someone who starts university next year will pay,” he told Sky News on Sunday.

Labor’s proposal comes after Albanians earlier this year reformed the way student loans are indexed, which is expected to wipe out $3 billion in student debt.