Adam Bandt blasted after claims interest rate rises will force Aussie students to pay $2.7billion

Greens Chief Adam Bandt was blasted after wrongly claiming Australian college students might be compelled to pay billions in curiosity on their loans following current rate of interest rises. 

Mr Bandt warned college college students on Monday that they are going to owe a further $2.7billion in curiosity this 12 months on their HECS-HELP loans in complete – however was rapidly contradicted by social media customers.   

‘For those who’ve bought a scholar mortgage, these rate of interest rises will hit you too,’ Mr Bandt claimed on Twitter. 

‘Uni college students are going to get hit with $2.7billion in curiosity this 12 months.’ 

Mr Bandt got here underneath hearth for complicated Australia’s scholar mortgage system with the one utilized in america – with the Greens MP criticised for seemingly not understanding how scholar mortgage repayments work. 

‘We do not have scholar loans right here in Australia, we now have HECS which does not accrue curiosity,’ one particular person wrote. 

‘Now we have HECS/HELP you imbecile … you need to know this,’ one other person wrote.

‘Fundamental stuff Adam. There is no such thing as a curiosity on HECS. It is listed to inflation,’ a 3rd chimed.  

One other person commented: ‘Barely embarrassing that the chief of a significant Australian political celebration would not even know the very fundamentals of the coverage he is criticising.’

‘HECS/HELP loans have a 0% actual rate of interest, and in reality larger charges decrease nominal curiosity on scholar debt by reducing inflation.’

HECS-HELP sees the federal government pay a scholar’s tuition charges whereas they full their diploma. 

Repayments are deducted mechanically by the federal government when a graduate earns over $47,014 a 12 months. The overall repayments scale up relying on a person’s wage.  

College debt doesn’t accumulate curiosity and is adjusted yearly by the Australian Taxation Workplace based mostly on the Shopper Worth Index (CPI). 

However the Greens declare Mr Bandt’s remarks are justified because the CPI is in flip influenced by rate of interest rises.  They argue that when rates of interest improve, so does the Shopper Worth Index, which in flip has a flow-on impact on elevated scholar money owed. 

On June 1, nearly three million Australians with an excellent scholar debt had been hit with a 3.9 per cent reimbursement improve – 0.6 per cent greater than final 12 months’s charge.

The reimbursement improve means college students with a median debt of $23,685 owed a further $920. 

Mr Bandt ended his Twitter submit urging the federal government to rid Australians of their ‘unsustainable’ scholar money owed. 

‘This is not sustainable. The Authorities must wipe scholar debt,’ Mr Bandt wrote. 

The Greens chief promised to abolish scholar money owed and vowed to make college and TAFE free if his celebration gained energy on the election in Might. 

In accordance with the Australian Taxation Workplace, there have been 2.9million Australians with an excellent debt totalling $68.7billion in 2021 – $2.3billion larger than 2020. 

The Greens chief acquired widespread criticism after he refused to face alongside the Australian nationwide flag at a press convention on June 20. 

A member of his workers was seen eradicating the flag from behind the rostrum earlier than the presser on the Commonwealth Parliamentary Workplaces in Sydney.

The controversial transfer meant that solely the Aboriginal flag and Torres Strait Island flag might be seen behind him as he spoke to the cameras.

The flag, first flown after federation in 1901, has the Union Jack within the higher left nook to acknowledge the historical past of British settlement.

‘For a lot of Australians, this flag represents dispossession and the lingering pains of colonisation,’ Mr Bandt mentioned.

‘By means of Treaty with First Nations’ Peoples and by transferring to a Republic, we will have a flag that represents all of us.’

A assessment of Mr Bandt’s earlier TV interviews reveals he at all times has the Aboriginal and Torres Strait Islander flags within the background, however by no means the nation’s flag.

Mr Bandt added later that the Union Jack image is hurtful to Indigenous Australians.

Prime Minister Anthony Albanese weighed on Mr Bandt’s ‘divisive’ actions and urged the Greens chief to ‘rethink his place’. 

Mr Albanese mentioned the transfer undermined the nation’s journey in direction of reconciliation whereas talking to reporters on June 22.  

‘(Mr Bandt) wants to consider the responses which have been made, and rethink his place and work to advertise unity and work to advertise reconciliation,’ Mr Albanese mentioned.

‘I am at all times very proud to face in entrance of the Australian flag and I feel anybody who’s a member of the Australian Parliament ought to achieve this as effectively.

‘Reconciliation is about bringing folks collectively on the journey that we have to undertake. It is undermined if folks search for division fairly than search for unity.’

A assessment of Mr Bandt’s earlier TV interviews reveals he at all times has the Aboriginal and Torres Strait Islander flags within the background, however by no means the nation’s flag.