Budget 2011 Changes to Student Loans and Allowances
19 May 2011.
The Government has announced changes to Student Loans and Student Allowances that will be implemented over the next two years.
The changes to Student Loan eligibility criteria are:
- People aged 55 and over will only be eligible for the compulsory fees component of the Student Loan.
- Part-time full-year students will no longer be entitled to borrow the course-related costs component of the Student Loan.
- Students who have an overdue repayment obligation of $500 or more that has been overdue for a year or more will not be entitled to a further Student Loan.
- All students applying for a new Student Loan will be required to nominate a contact person as a condition of accessing the Student Loan Scheme.
In addition, there are:
- changes to the two-year stand-down for Student Allowances and Student Loans for sponsored family members of protected persons.
The following changes were also announced that will affect students who have a Student Loan:
- From 1 April 2012 borrowers will be required to apply for a repayment holiday. The term of repayment holiday available will be shortened to one year. This change is subject to legislation expected to be passed in 2012.
- From 1 April 2012 borrowers will no longer be able to include losses in the calculation of income for repayment purposes. This change is subject to legislation expected to be passed in 2012.
- The repayment threshold will remain at $19,084 until 31 March 2015.