Bill will scrap upfront repayment discounts for uni loans
UNIVERSITY hopefuls starting study as early as next year will not get discounts on $500 upfront payments on their university loan debts, after the Abbott Government moved to strip the discounts today.
Education Minister Christopher Pyne introduced a bill to remove the 10% discounts on up-front payments, as well as remove a 10% discount on debts when students pay 90% of their debts upfront.
The moves will save the new government almost $280 million, and if passed by the Senate before the end of the year, will mean students starting study next year will not get the discounts.
Other changes will also remove subsidies for universities that provide "Commonwealth supported places" at institutions around the country.
If passed, that move will also save the government a further $900 million over the next four years.
In the explanatory memorandum for the bill, the government has also backdated the change on upfront payments to any upfront payments for study next year.
The removal of the upfront discount will not rule out discounts for people who are paying off debt from studies completed this year or previously.
But it will ensure those wishing to study next year, and expecting to use the upfront discount, will not be able to.
The bill is yet to pass the parliament.