There have been a few changes in the recent 2024 Federal Budget which will directly impact students. Financial counsellors from La Trobe’s Financial Counselling service take a look at what it all means:
HECS/HELP student loan changes
A small bit of positive news for domestic students with HECS or HELP loans. HECS and HELP loans will no longer be directly linked to inflation which last year added 7.1% to a HECS/HELP loan with another pending increase of around 4% this year if no changes are made.
In future, pending legislation approval, student debt loans will grow at either the consumer price index or the wage price index whichever is lower.
This change will be backdated to June last year which will mean on a $25,000 loan, of the charges added due to inflation last year, $1,200 will be wiped.
Loan Repayments on HECS/HELP loans begin when you earn more than $51,500 but there is a percentage scale which ensures a gradual compulsory payment applies depending on much you earn each year. Learn more about loan repayments.
New Commonwealth prac payment
This will give students in teaching, nursing, midwifery and social services students $319.50 per week during mandatory placements from July 2025. It is to be means tested but it is unclear how that will occur. It is also still unclear if international students will be eligible to receive this payment.
While small, the payment is welcome as a start in the right direction. We already know a lot of our students are suffering from placement poverty, where they struggle to cover rent and other necessities and cannot afford to be without a regular income during placement periods.
International students
The number of places for international students will be capped and increases linked to provision of accommodation or identified courses. Details are still to be worked through with the higher education sector.
Other general changes
Other general changes which may help support some students:
- $300 rebate/relief on power bills per household
- For those getting Centrelink payments, rent assistance payments to increase by 10%
Financial counsellors at La Trobe
This brief overview was provided by financial counsellors from the Financial Counselling service at La Trobe.
If you want more information on the impact of the Budget or are struggling with the cost of living or any other financial issues, do not forget to contact Financial Counselling who will help you work through your options.
For more information on the range of services, Financial Counselling can provide or register for an appointment, visit our Financial Counselling website.