Following APRA’s recent announcement about the treatment of Higher Education Loan Program (HELP) debt by lenders, ASIC has announced that it has updated Regulatory Guide 209 Credit licensing: Responsible lending conduct (RG 209) to clarify how the Higher Education Loan Program (HELP), and other student loan commitments, may be considered by banks and lenders assessing whether a consumer can afford to take on new credit.
The update to RG 209 acknowledges that HELP debts are different from other forms of debt because the amount that is required to be repaid depends on a person’s level of income.
The update to RG 209 is limited to the treatment of HELP debts in lending assessments. ASIC says it does not change broader lending policies or responsible lending obligations.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
