Three million Australians who were hit with a 7.1 per cent increase in their HECS debt last week will now also find it more difficult to secure a home loan.
As of September, banks were made to include the HECS or HELP debt in debt-to-income ratios, meaning the amount still owed affected how much could be borrowed.
Harrison Astbury paid off his $16,000 HECS debt to avoid indexation rises. Credit: Paul Harris
Millions of graduates have made voluntary HECS debt repayments to avoid the indexation rise, but financial experts have urged graduates not to panic and should instead focus on any other forms of debt.
HECS debts increased on June 1 in line with inflat…
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