More than 3 million Australians will see their student debt rise in line with inflation tomorrow, adding more than $1,000 to the average loan and sparking warnings of a lifelong impact on borrowing capacity.
Key points:
- The average $25,000 HECS-HELP debt will rise by $1,775 because of indexation
- There is more than $74.3 billion in outstanding HECS-HELP debt
- Debts affect the ability of more than 3 million Australians to secure other loans such as mortgages
Indexation of 7.1 per cent the highest in more than three decades will be applied to more than $74 billion in outstanding HECS-HELP and vocational education loans.
For the last decade, indexation averaged 2 per cent per year.
Lending institutions consider HECS-HELP debt in the same way as ot…
Read the full article at: https://www.abc.net.au/news/2023-05-31/hecs-student-debt-indexation-borrowing-capacity-futurity-study/102409826