Achieving outcomes for students

In mid-2023, the Office noticed an influx of media reports about the costs of student loans, with high rates of indexation applied to student debts.

The indexation was applied to various student loan schemes administered by the Department of Education (Education), Department of Employment and Workplace Relations (DEWR) and Department of Social Services (DSS).

We looked into the matter informally and considered what information was publicly available to students about indexation applying to various student loan schemes, including VET FEE-HELP, Student Startup, Trade Support, HECS-HELP loans and Student Supplement Financial Loan Scheme debts.

We found the information about indexation was absent or referred to inconsistently across the different student loan schemes.

Where information about indexation was provided, we found it was limited and lacked clear examples of how indexation applied specifically to student loans.

The Ombudsman subsequently wrote to the secretaries of Education, DEWR and DSS about the availability and consistency of information available to students about the financial implications of taking out a student loan.

The Ombudsman explained the importance of providing clear, coordinated and consistent information about the operation of student loan schemes, including the financial implications for prospective students.

This information is essential to helping students make informed decisions before taking out a student loan.

In response, the departments agreed to work with each other and with Services Australia and the Australian Taxation Office (who both deliver services on behalf of the departments) to review and update the publicly available information to ensure it is clear and consistent across the various schemes.

This information will assist students to better understand the financial implications and manage their student loans more effectively.

2024