The Education Department initially published incorrect information about the impact of university funding reforms and changed its website to emphasise that former students with higher education loan program (Help) debts could also pay higher interest rates.



As part of the reforms announced in the budget students' debts will be indexed in a way that could see interest rates on their debts rise to as much as 6%.



The department’s advice to students on the changes and how it would affect them initially contained a section titled “changes to interest rates for Help debts” that appeared to indicate the revised interest rates for students would apply only to continuing and new students.



The department's website originally said: “The interest rate for Help debts will be indexed by the treasury 10-year bond rate (to a maximum of 6% per annum) rather than the consumer price index (CPI). This means that government is lending money at broadly the same interest rate as it borrows money. The new arrangements will apply to continuing and new students beginning with the indexation of debts on 1 June, 2016.”



But the page was later altered to emphasise that the new arrangements would affect former, continuing and current students from 2016.

The education website showing the earlier incorrect statement.

Photograph: supplied

“The new arrangements will apply to all Help debts (including those incurred by former students, continuing students and new students) beginning with the indexation of debts on 1 June, 2016. Debts are not indexed until they are 11 months old,” the new page said.



A spokesman for the Education Department confirmed the webpage had been altered, but did not respond to questions about how long the incorrect information was accessible.



“The 2014-15 budget information was published on the department’s website the day after the budget,” he said.



“The information on the website was amended to clarify that the new indexation arrangements will apply to all people with a Help debt.”

The federal government has faced a heavy backlash over the proposed education reforms, with large student protests and university leaders expressing concern about the level of debt students will face.



The education minister, Christopher Pyne, said on Wednesday that he was open to collecting student debts from deceased estates. Later in the day the prime minister, Tony Abbott, ruled out collecting the debts from estates.

