Student loan repayment rises

The federal government has increased the income level at which university students must start paying back the cost of their tuition fees.

Education Minister Julie Bishop announced people with Higher Education Loan Program (HELP) debts would now not have to begin paying back their student loans until their income reached $39,825 - an increase on the current $38,149.

The change, which affects people with HECS-HELP and FEE-HELP debts, will take effect on July 1 this year.

Ms Bishop said repayments, which are taken out of a person's income alongside tax, started at four per cent of income and did not exceed eight per cent.

"Weekly income would need to be more than $765 before repayments need to be made, with repayments of around $30 a week at that income," she said.

"There is no requirement for people to repay until they are able to do so and if they never reach that threshold, taxpayers, through the Australian government, carry the cost."

The National Union of Students said the move would ease financial pressure on graduates but did not help students who were struggling to balance work and study, often getting themselves into private debt.

"Alleviating the burden of HECS debt for low-income earners contributes to easing pressures in graduates' working lives, however doesn't address the issues of access to higher education and insufficient investment," union president Michael Nguyen said.

"The recent Australian Vice Chancellors Committee report showed that students were finding it increasingly difficult to study full-time and to finance themselves while at university."

Opposition education spokesman Stephen Smith welcomed the increased threshold but said university students were paying far more for their education than before the John Howard government came to office and had them pay if they did not fit into the top 5% of wealthy familys who enjoy John Howards Tax Breaks for free education, education loans were indroduced by the John Howard Government making free education for Australians a thing of the past.

"It does nothing to assist students while they are actuallystudying, which according to vice chancellors, is when they most need support," Mr Smith said.