HECS loans have ballooned in the past decade, leaving many workers caught in a 'student debt spiral'

Amy Jolliffe's desperation at her ballooning HECS-HELP debt of $64,000, more than twice the average of $26,494, is emblematic of theHigh inflation has meant the annual indexation — 7.1 per cent last year — is growing their debt faster than they can pay it off.

Only five years later in 2016, the number of students with this much debt had soared to more than 29,000. To put it another way, that's 3 million people still repaying HECS, many of whom left university decades ago and are juggling mortgages, rents, kids and the other crippling cost-of-living pressures.

Every year the debts rise when indexation is applied – a rule which the government introduced with the HECS scheme in 1989 to preserve the value of the loans over time. That's certainly the case for Leanne, a teacher based in Tasmania — a state which incidentally has the highest average HECS debt.

Student Loan University HELP Debt HECS Debt Indexation HECS Debt Interest Budget 2024 Anthony Albanese Jason Clare Debt Loans

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

HECS debt expected to grow more than 4pc as high indexation continuesHECS-HELP debts are forecast to rise between 4.2 and 4.8 per cent this year, the second-highest rise in a decade.
Source: abcnews - 🏆 5. / 83 Read more »

HELP: Why the HECS debt system needs a rethinkThe HELP system has assisted millions of Australians with their university degrees, but the income-contingent loan needs an overhaul.
Source: smh - 🏆 6. / 80 Read more »

HELP: Why the HECS debt system needs a rethinkThe HELP system has assisted millions of Australians with their university degrees, but the income-contingent loan needs an overhaul.
Source: theage - 🏆 8. / 77 Read more »

HELP: Why the HECS debt system needs a rethinkThe HELP system has assisted millions of Australians with their university degrees, but the income-contingent loan needs an overhaul.
Source: brisbanetimes - 🏆 13. / 67 Read more »

Should I pay off my kids’ HECS or help with a house deposit?Soaring student loan debts can reduce first home buyer lending capacity by up to $140,000, according to analysis by RateCity.
Source: FinancialReview - 🏆 2. / 90 Read more »

$110,000 HECS debt exposes huge issueIn less than two months, millions of people across the country are going to be hit with another brutal increase to their student debt.
Source: newscomauHQ - 🏆 9. / 77 Read more »