Australian Government Announces Cut to HECS-HELP and Student Loans Debt

Policy Backdated to June 1, 2023

The Australian Government has announced a cut to the indexation rate for HECS-HELP and student loans debt. The policy will be backdated to June 1, 2023, meaning that last year's 71% indexation will be lowered.

Impact on Student Debt

The measure will also be backdated to 2023, meaning the 71% increase will be replaced with a much lower rate. About 3 million Australians hold student loans at an average debt of $26,500. The measure would cut the cost of repaying these loans by an average of $1,000 per year.

Similar to interest, your HELP debt will grow. Students with debts of $50,000 will face rises of $2,400, while students with $100,000 loans will be hit with an increase of $4,800.

Last updated: 7 April 2024
On 1 June each year, indexation is applied to the part of an Australian citizen's HECS-HELP or student loan debt that remains unpaid as at 1 May that year. The indexation rate is set by the government.

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