
The Conversation | 1 August 2014 ……………………………………………………………………………………………………… An important issue for Australian university funding concerns the rate of interest applied to Higher Education Loan Program (HELP) debt. For the last 25 years the debts have been adjusted to inflation; this has ensured that the loan carries a zero real rate of interest for all debtors. Times have changed. The 2014/15 budget proposes that the debt be adjusted to the long-term government bond rate, which would lead to significant inequities in the system. Bruce Chapman and Timothy Higgins (ANU) recently conducted some research on this issue, and found there are alternative indexation arrangements worth … [Read more...]