As the financial year approaches, the June 1 HECS-HELP indexation deadline nears, impacting the student loans of 2.95 million Australians. Early data suggests an increase of 4.2% to 4.8%, potentially adding up to $1,272 to the average student debt of $26,494.
Since 2005, student loan debt in Australia has surged from $12.4 billion to $78 billion. The repayment period now stretches nearly ten years, with women bearing a larger debt burden.
Indexation, based on the CPI, adjusts loans to the cost of living. With rising indexation rates, it’s crucial for borrowers to understand their repayment options, including the strategic use of voluntary repayments.
Key 2024 HECS Debt Figures:
2.95 million Australians with student loans
$78 billion total debt
Average debt: $26,500
Forecasted inflation adjustment: Approx. $900
Stay informed and consider your repayment strategies carefully.
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