How much your HECS debt just increased by — and why that figure is set to drop

More than three million Australians have been slugged with a student loan hike, despite growing calls for a system overhaul.

debt goes up annually due to indexation — where inflation figures are used to increase the debt amount to reflect what cash is worth in today's dollars. On Saturday, loans jumped 4.7 per cent, the second-highest increase in a decade, after last year's rise of 7.1 per cent. Education Minister Jason Clare reassured those with a debt on Saturday morning that the government is set to make the system "fairer".

debt paid throughout the year to be deducted from the outstanding balance before indexation is applied. Under the current system, payments withheld throughout the year are only deducted at the end of the financial year, after the debt is adjusted on 1 June. "The government could, and should, have acted to change when indexation is applied so that people are not indexed on amounts already repaid," independent senator David Pocock told the Australian Associated Press.

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