Changes to student debt indexation have been announced amid rising costs.

Prime Minister Anthony Albanese says the government plans to reform the Higher Education Loan Program (HELP), formerly known as the Higher Education Contribution Scheme (HECS). 

With many student debts outpacing wage increases, the government aims to introduce measures to make the loan system “simpler and fairer”.

HELP debts rose by 7.1 per cent last year due to inflation, and research from the parliamentary library predicts a further increase of between 4.2 per cent and 4.8 per cent this June.

“There's a range of areas we need to do much better for the younger generation and HECS is one of them,” Prime Minister Anthony Albanese said. 

Plans for reform are expected to be unveiled as part of the government's broader Universities Accord initiative. 

This follows the accord's recommendation to peg debt indexation to the lower of the consumer price index or the wage price index.

The call for reform has garnered widespread support, with over 260,000 signatures on a petition initiated by Independent MP Monique Ryan. 

The petition calls for adjustments to ensure that loan increases do not outstrip borrowers' ability to make repayments. 

A coalition of crossbenchers, including MPs Zoe Daniel, David Pocock, Allegra Spender, and Kylea Tink, have also backed these reforms.

Education Minister Jason Clare has also backed the changes, noting that adjusting the HECS/HELP repayment system could “provide immediate cost-of-living benefit” for those on lower incomes.

The Greens have criticised the government's pace and the scale of the reforms. 

Senator Mehreen Faruqi, deputy Greens leader, argues that immediate action is necessary to prevent substantial increases in student debt by the next academic year.