Proposal to use super to pay student debts

Liberal senator Chris Back wants students to be able to tap into their superannuation to pay off student loans.

Tertiary students at the University of Melbourne in Melbourne, Wednesday, May 8, 2012. (AAP Image/Julian Smith) NO ARCHIVING Source: AAP

A Liberal senator wants graduates to be able to pay off their student loans using superannuation.

Chris Back says the plan would ease cost of living stresses for young people in their 20s and 30s at a time when they likely have young families and mortgages, allowing them to make up the shortfall in their superannuation later in life.

"I am very hopeful it will find its way into this year's budget," Senator Back told ABC radio on Thursday.