Proposal to use super to pay student debts

A Liberal senator wants graduates to be able to pay off their student loans using superannuation.

Chris Back says the plan would ease cost of living stresses for young people in their 20s and 30s at a time when they likely have young families and mortgages, allowing them to make up the shortfall in their superannuation later in life.

"I am very hopeful it will find its way into this year's budget," Senator Back told ABC radio on Thursday.

Opposition Leader Bill Shorten doesn't believe Labor will support the idea and says the government should instead restore funding cuts and reverse plans to deregulate universities.

"I just don't see why young people should have to bear the burden by going into their superannuation when there are smarter ways to help fund our university system and keep downward pressure on the price of going to university," he told ABC radio.