What is interesting is that Treasury is of the opinion that these changes may actually make the debt level worse, leaving both borrowers and the government worse off.
As at 31 January 2013 overseas based borrowers had arrears of $423 million. This is expected to increase to $769 million by 2015. Treasury itself says:
"...the rate at which the default amounts of overseas borrowers is growing is
faster than the rate at which compliance is increasing. Increasing the repayment obligations of these borrowers will mean that it will take longer to slow and eventually reverse the rate of growth of overseas default amounts... there is a risk that some previously compliant borrowers with balances greater than $45,000 will stop repaying or repay less than their obligation because of the higher repayment rate"
In other words, the government has proceeded even though its own officials have warned that the debt situation is likely to be made worse. Who wins out of all of this? Not the taxpayers, and not the student loan debtors that's for sure.