The recent outbreak of high inflation means millions of Australians with student loan debts are facing a 7.1% increase in June.
This is because Help debts (and Hecs, and some other student loans) are re-indexed every financial year using a formula based on the cost of living index.
Relatively recent changes to the Help repayment thresholds mean that when the indexation rate is above 1%, people on low incomes can be making payments that are less than the amount added by indexation meaning some people see their debt rise despite making compulsory payments.
Here, you can use this interactive model to see how indexation affects a Help debt over 10 years from 2013 using actual payment thresholds, given a starting debt and a starting income. The…
Read the full article at: https://www.theguardian.com/news/datablog/ng-interactive/2023/may/03/millions-of-australians-face-higher-help-and-hecs-debts-see-how-inflation-will-change-your-repayments