HECS indexation to apply from Saturday, meaning hike to anyone with an outstanding debt

Millions of Australian students with an outstanding HECS debt will see an increase in the amount of money they owe when the second-biggest indexation to their student debt is applied on Saturday. Anyone who has an unpaid loan on June 1, will see their debt increase by 4.7 per cent. According to the Federal Government, the average HECS debt is about $26,000. A 4.7 per cent hike on this would increase it by more than $1200. It’s a significant jump but still significantly less than the 7.

Australians with a HECS debt can check the exact value of credits expected to be applied when legislation is passed, the Department of Education has created an Indexation Credit Estimator. “Spikes in inflation have exposed a flaw in this system — and put young people under unfair pressure,” Chalmers said. “We are fixing that and changing it so it won’t happen again.

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