Millions of Australians are expected to be hit with hikes in their HECS repayments amid skyrocketing inflation.
Student loans, known as HECS-Help, are not charged interest. Instead, the full amount is indexed to inflation each year.
They are often labelled a good debt being far cheaper than other types of debt.
Over the past decade, the average indexation rate was just shy of 2 per cent, however as inflation has skyrocketed, the indexation rate has, too last year, it hit a decade high of 3.9 per cent.
In 2023 it is forecast to be even higher and could reach 7 per cent, impacting repayments from June. The actual figure wont be known until April 26, when the Australian Bureau of Statistics reveals the March quarter inflation figures.
…
Read the full article at: https://www.heraldsun.com.au/business/economy/shock-increase-to-hecshelp-repayments-explained/news-story/1bc9981ad96f2c8a191689a73a3d9944?nk=00fc87ce37cfd6b73c0d1d1cfc3b5cc8-1681750905