Liberal Senator Chris Back has proposed a plan which will allow students to repay their Higher Education Loan Program (HELP) debts using superannuation funds.
According to Back, the plan will aim at relieving the students from the daily cost of living that pose considerable financial stress on them. This plan will help young people in their 20s and 30s to repay their loans at the time they earn enough properties to cope up well with their financial liabilities. AAP reported this proposal has been made, keeping in mind the stress that students face due to their outstanding loans during their study period. It will give them an opportunity to cover up their financial liabilities using their superannuation funds when they get older.
Back seemed quite hopeful that his proposal will be included in the financial budget of 2016. If not, it will definitely be included in the 2016 election campaign as one of the major policies. He believed that the plan will also play a vital role in delivering huge budget savings. “At a time when they really do have a high liability, perhaps a young family [or] a mortgage, they’ve got this HELP debt sitting over them,” he told ABC Radio’s AM.
The Liberal Senator has requested Treasurer Scott Morrison to look into the plan and help graduates repay their government loans at the time they have their superannuation amount. According to the ABC, the Parliamentary Budget Office modelling indicated that the plan would be successful with helping the government save up to $500 million in case it gets included into budget 2016.
Opposition Leader Bill Shorten said that he doesn’t think Labor will show any support for the plan. However, he advocated that the government should retain cuts on funds and reverse plans to deregulate universities.
“I just don’t see why young people should have to bear the burden by going into their superannuation when there are smarter ways to help fund our university system and keep downward pressure on the price of going to university,” he told the ABC Radio.