At a time when skyrocketing student debt is making the cost-of-living crisis worse, the Greens have announced an election plan to wipe all student debt, unshackling almost 3 million people from their debts and allowing people to keep more of their paycheck. Since Labor came to office, total student debt has soared to over $81 billion1, and student debt has risen by 16%.
The Greens have relentlessly pushed the Albanese Government to deliver desperately needed student debt relief since they came to power, and the pressure has worked in securing changes to indexation as well as recent commitments to raise the minimum repayment income and cut student debt by 20% after the election.
However, Labor’s plans still fall short of what’s needed- Labor’s indexation tweaks still lock in student debt hikes every year. 80% of a lifetime of debt is still a lifetime of debt. All student debt should be wiped.
The Greens’ plan to wipe all student debt, part of the party’s ‘Robin Hood’ reforms, will be paid for by taxing big corporations that are profiting off price gouging during a cost of living crisis. For someone who has an average student debt and who earns an average income, the Greens’ plan would result in a debt of $27,600 being wiped and a saving of $5,500 a year2– enough to cover more than six months’ worth of groceries3.
The latest ATO data shows that almost 57,000 Australians have a student debt of more than $100,000 compared to less than 23,000 in 2018-194. Meanwhile, the number of people with a student debt of more than $50,000 has doubled over the last five years, from 7% to 14%. The Greens’ policy will wipe these massive, stifling debts which take years to pay off and make it easier for so many to save money, start a family and get ahead.
Wiping student debt will also make it easier for people to buy their first home. Recent analysis from the NAB shows that having an average student debt reduces the borrowing capacity of a person on a $120,000 salary by $90,0005.
The Greens plan to wipe student debt has been independently costed by the PBO. Based on this analysis, the plan would have a fiscal impact of $74 billion over the decade. Wiping student debt will overwhelmingly benefit young people and women, with recent parliamentary library data showing that 71% of student debt is owed by people below the age of 35 and 59% of student debt is owed by women.
The policy will be announced by Deputy Greens Leader and Higher Education Spokesperson Senator Mehreen Faruqi and Greens candidate Samantha Ratnam in the key Greens target seat of Wills on Monday. The Greens are running a massive people-powered campaign in Wills, where less than 1 in 10 people need to change their vote for the Greens to win the seat. Greens volunteers have already knocked on over 20,000 doors in Wills.
Student debt is a key concern for voters in Melbourne electorates like Wills. Melbourne is bearing the brunt of the student debt crisis, where more than 650,000 people owe a staggering $19.4 billion in student debt. This is higher than any other capital city. Student debt will also be a key concern for voters in the Prime Minister’s home city of Sydney, where more than 615,000 people owe almost $19 billion in student debt.
With a minority Parliament looming, the Greens say wiping all student debt is a key policy demand for the Party this election and will be on the table and pushed in any minority Parliament negotiations after the next election.
Lines from Senator Mehreen Faruqi, Deputy Leader of the Australian Greens & Higher Education Spokesperson:
“Wiping student debt will put money back in the pockets of people who desperately need it to make ends meet, pay rent or save for a deposit for their first home.
“With everything from rents to grocery bills through the roof, wiping all student debt will make a real, tangible difference to so many people doing it tough.
“The Greens have a plan to take on the price-gouging corporations and coal and gas giants to make them pay their fair share of tax and wipe all student debt so you keep more of your weekly paycheck.
“The Greens are the only party fighting to wipe all student debt so you have more money to spend on the things you need.
“Student debt can’t be fixed because student debt shouldn’t exist. All student debt should be wiped. If Anthony Albanese can go to uni for free, so should everyone else.”
Lines from Samantha Ratnam, Greens candidate for Wills:
“Whether it be spiralling student debts or unrestrained rent rises, young people are being totally let down by Labor and their inadequate, bandaid solutions.
“So many people in Wills tell me that their student debt is holding them back. Wiping student debt will make life better for so many people.
“It’s hard enough for first home buyers in Wills to get a foot in the door without student debt making it even harder.
“People in Wills know that they can’t keep voting for the same two parties and expecting a different result. Only the Greens will wipe your student debt, so you can keep more of your paycheck.”
References
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2 Greens estimates based on ATO withholding rates
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