Your HECS-HELP debt is about to grow 3.9 per cent. So should you pay it off early?
2 years, 7 months ago

Your HECS-HELP debt is about to grow 3.9 per cent. So should you pay it off early?

ABC  

It's often referred to as the "best loan you'll ever get". If you have an outstanding HECS-HELP debt, your balance is set to increase by 3.9 per cent on June 1. Prior to the pandemic, the indexation rate averaged about 2 per cent — roughly half the rate of this year's increase. Year Indexation rate 2022 3.9 per cent 2021 0.6 per cent 2020 1.8 per cent 2019 1.8 per cent 2018 1.9 per cent Source: Australian Tax Office So, what does it mean if you have a student debt? Why it can pay to focus on other debts before HELP While you might be worried about your HECS-HELP debt, it's important to consider your entire financial picture, says Kate McCallum, a financial adviser and co-author of The Joy of Money.

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History of this topic

HECS-HELP debts are set to rise 4.7 per cent in June. Here's why Nellie's not paying extra this year
8 months ago

HECS-HELP debts are set to rise 4.7 per cent in June. Here's why Nellie's not paying extra this year

ABC  

Editor’s note: After this story was published, the federal government proposed to change the HECS-HELP indexation rate to match whichever is lower out of the Consumer Price Index or the Wage Price Index. The release of March inflation data means student HECS-HELP debts are set to rise by 4.7 per cent on the first of June this year. It might …

HELP debt is rising 7.1% in June. Should you pay it down early?
1 year, 7 months ago

HELP debt is rising 7.1% in June. Should you pay it down early?

ABC  

After the release of March inflation data, we now know that student HELP debts will rise by 7.1 per cent on June 1 this year. The downsides to making early HELP debt repayments "The problem with paying a HELP debt early is that you can't reverse the decision," Mr Rogers says. HELP debt indexation rates Year Rate 2023 7.1 per …

HECS-HELP indexation is forecast to be higher this year. Is it still a 'good debt'?
1 year, 8 months ago

HECS-HELP indexation is forecast to be higher this year. Is it still a 'good debt'?

ABC  

The cost of living is rising and that means that people who have a Higher Education Loan Program debt should brace themselves for increases. For CSP's the federal government covers some of the student's uni fees and the student pays the rest — that's what's known as the "student contribution amount". Here's a look back at the past 10 years: …

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