Australia¡¯s government has acceded to a backbench revolt and softened its proposal to saddle students with lifetime borrowing limits.

The government has amended its own legislation to cap borrowing at A$104,440 (?56,730) for students in most disciplines, and at A$150,000 for those studying medicine, dentistry or veterinary science.

Instead, students¡¯ loan balances will now be made ¡°renewable¡±. This will allow them to continue borrowing above the limits as long as they repay enough money to reduce their outstanding debts below those caps.

The amendment puts into practice a surprise recommendation of a Senate committee that, although it is dominated by MPs from the ruling Coalition, demanded the change in a report on the legislation earlier this month.

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The bill has now cleared the House of Representatives, despite the Labor opposition¡¯s move to stop parliament considering it ¡°because it attacks students and would undermine the fairness of Australia¡¯s world-class student loans scheme¡±.

While Labor opposes the borrowing limits, it is particularly incensed by the bill¡¯s principle measure of reducing the repayment threshold ¨C the income level at which former students must start repaying their debts ¨C from about $A55,000 to A$45,000.

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With the Greens also fiercely opposed, the legislation faces a difficult passage in the Senate, where the government will have to win the support of nine of the 11 cross-bench senators.

The bill¡¯s fate could be determined as early as 28 March if room can be found to debate it in the Senate¡¯s schedule. If not, the next opportunity to consider it will be in early May.

The government was given a preview of the difficulties it can expect during a debate in the House of Representatives on Monday. Minor party MP Rebekha Sharkie indicated that she would support the bill as long as the lifetime loan limit was made ¡°replenishable¡±.

However, Victorian independent Cathy McGowan said that the changes would have a ¡°negative impact¡± on her community, which was already afflicted with ¡°appalling statistics for young people accessing tertiary education¡±. She said the higher education attainment rate in her electorate was only slightly over half the Victorian average.

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The proposal to cap student borrowing was linked to the government¡¯s decision to freeze funding for undergraduate courses at 2017 levels for two years, a move that did not require parliamentary approval.

john.ross@timeshighereducation.com?