Proposed changes for study and training loans
In November 2024, the government announced changes to study and training support loans. These changes are not yet law.
You don't need to do anything for the proposed changes to apply to your study and training loan. We will let you know once the changes are law and when they will be applied.
20% loan reduction
The government has proposed a 20% reduction to study and training support loans that exist on 1 June 2025, subject to the passage of legislation.
Indexation of 3.2% will apply to all loans on 1 June 2025. You may wish to consider the proposed 20% reduction before deciding when to make a voluntary repayment.
For more information, see 20% reduction of student loan debtExternal Link on the Department of Education website.
Repayment system changes
The government has proposed changes to the repayment system to take effect from 1 July 2025 subject to the passage of legislation.
- The minimum repayment threshold will change from $54,435 in 2024–25 to $67,000 in 2025–26.
- Compulsory repayments will only be calculated on the income above the new $67,000 threshold instead of the total annual income.
For more information, see Making HELP and student loan repayments fairerExternal Link on the Department of Education website.
Indexation rate calculation change
The indexation rate for study and training loans is now based on the Consumer Price Index (CPI) or Wage Price Index (WPI) – whichever is lower.
This change was backdated to indexation applied from 1 June 2023 for all study or training support loan accounts. Indexation rates for 2023 and 2024 changed to:
- 3.2% for 1 June 2023 (reduced from 7.1%)
- 4% for 1 June 2024 (reduced from 4.7%).
We have process recredits for 2023 and 2024 indexation rate changes as well as any relevant refunds where study loans were in credit after the adjustment. You can view your loan account online.
If some or all your indexation was waived in 2023 or 2024, you would have only received a recredit on the indexation that was not waived. We applied the full indexation recredit to your account, and then applied a separate transaction to correct the amount.
Trade Support Loan name change
From 1 January 2024, a Trade Support Loan (TSL) is known as an Australian Apprenticeship Support Loan (AASL)External Link.
The name change was included in the Trade Support Loans Amendment Act 2023External Link that amends the Australian Apprenticeship Support Loans Act 2014External Link. It received Royal Assent in August 2023. This brought changes to the existing TSL program (which was introduced in 2014).
The TSL program provided income-contingent loans to eligible apprentices to help with everyday costs while completing their apprenticeships. The AASL program expands access to these loans to a broader range of apprentices and trainees, including non-trade occupations. A new Australian Apprenticeship Priority List replaces the TSL Priority List.
Early childhood, aged care and disability are examples of sectors that may benefit from this expansion.
For more information, go to the Department of Employment and Workplace Relations Australian Apprenticeship Support LoansExternal Link page.
HELP loan reduction for rural doctors and nurse practitioners
The HELP for Rural Doctors and Nurse Practitioners initiativeExternal Link applies from 1 January 2022. It gives doctors and nurse practitioners the opportunity to reduce their outstanding Higher Education Loan Program (HELP) loanExternal Link if they meet:
- the eligibility criteriaExternal Link
- their obligationsExternal Link to complete the required amount of eligible work in specified areas.
For more information, contact the Department of Education at veryremotehelp@education.gov.au.