<p>For three million Australians, the announcement of a reduction in indexation on their HECS and HELP student loan debt is welcome. The change means an estimated $3 billion will be wiped from student’s debt from July, because the amount is backdated to include the indexation added in 2023.</p> <p>Also, proposed changes to the rate of indexation (similar to an interest rate) will not be based on inflation, but on more stable rates. The government is proposing it should be indexed using the Consumer Price Index or Wage Price Index, depending on which is lower on any given year.</p>