Liberal senator flags recouping student debts from deceased estates

Years after the idea was killed off by Tony Abbott, a federal Liberal MP puts the idea back on the agenda.

Os estudantes universitários pagam por seus cursos superiores por meio de um empréstimo com juros baixos do governo federal, conhecido como empréstimo HECS. Source: AAP

Collecting student loans from deceased estates could be back on the government's agenda, after a federal Liberal MP flagged the idea in parliament.

Ben Morton raised the possibility in parliament on Monday, two years after the suggestion was killed off by former prime minister Tony Abbott.

"To be very clear this would not be a death tax," Mr Morton said, pre-empting criticism levelled by Labor at the proposal first put forward by then education minister Christopher Pyne in 2014.

Liberal MP Ben Morton, the member for Tangney, WA. Source: www.aph.gov.au

Mr Morton is a strong backer of legislation currently before parliament to reduce the student loan repayment threshold to $45,000 a year.

That's $3000 higher than the threshold they failed to get through the Senate last year, but $10,000 lower than the existing repayment level.

"I believe that for the long-term sustainability of the system we will need to go further," he said.

"There is a strong policy case for looking at the option of recouping student debts from certain estates."

Mr Morton said the current system meant some students would never take responsibility for repaying loans.

The government failed to get the crossbench support it needed in the Senate to pass the $42,000 threshold last year, but could have more luck this time around.

Nick Xenophon Team MP Rebekha Sharkie indicated her colleagues could be willing to support the new threshold if the government would negotiate on the lifetime cap.

The current plan would place a $150,000 cap on loans for students studying medicine, dentistry and veterinary science and $104,440 for other students.

Ms Sharkie wants the government to allow students to take out additional loans if they've paid back enough to put them back below the threshold.

Labor remains fiercely opposed to the changes.

"How can someone starting out even think of paying a mortgage, or getting married or starting a family when their income is sequestered by student loan repayments," Madeleine King questioned.

Susan Lamb said the point of student loans wasn't to churn students through university but to give them the opportunity to set up a career that would benefit the country.