Editor's note

With the higher education reforms to go before Parliament next week, Mark Warburton brings us five things you might not have considered about changes to HELP debts.

He warns of the ills of repeating the Howard government’s mistake of lowering the repayment threshold, which they had to raise again seven years later. HELP repayments would increase marginal tax rates, significantly reducing disposable income for families. Single parents and single income families especially will not have incentive to work more, for fear of passing the threshold and invoking higher tax rates.

Students already spend many years paying off their debts, but under the proposed reforms, it could take them one to two decades to be debt-free. HELP repayments have long-term consequences for students and their families, and these reforms are worth paying attention to.

Sophie Heizer

Assistant Section Editor

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HELP repayment arrangements have long term consequences for students and their families. Shutterstock

Five things senators (and everyone else) should know about changes to HELP debts

Mark Warburton, University of Melbourne

Senators should consider how repayment thresholds vary depending on family circumstances, the impacts on taxes and how long students will be saddled with debt.

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