HECS architect says labor loan cut leaves real issues unresolved

The architect of the country’s higher education loan program says the Albanian government’s plan to cut $16 billion from existing debt is a political exercise and does not solve emerging problems with the program, as economists warn it Labour’s proposal will favor high incomes.

Bruce Chapman, who designed the means-tested student loan system known as HECS for the Hawke government in 1989, said he supported the other changes the government made, including raising the income threshold from $54,000 to $67,000, at which point loans must be repaid.

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