Hecs Debt Interest Rate

Government to cap HECS payments and backdate changes

What does this mean for you?

The government has announced it will cap the annual indexation of HECS and HELP debts to 48 per cent, down from 71 per cent last year. The change will also be backdated to June 1 2023. This means millions of students on income-contingent loans will see their repayments decrease.

Cuts to HECS and HELP

About 3 million Australians hold student loans at an average debt of $26,500 and the measure would cut $309 million from the government's revenue over four years.

It places this year's rate at 48 down from a punitive 71 last year but still the second highest rise in HECS rates since they were introduced in the late 1980s.

The government also said it would backdate this change to June 1 2023, meaning millions of students on income-contingent loans will see their repayments decrease.

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Find out the total resourcing for a Commonwealth supported place by discipline in 2024.

Last updated 7 April 2024. On 1 June each year indexation is applied to the part of an...