Australian student debt indexing paused until 2025
Higher education loan repayment pause to save borrowers up to $1,700
The federal government has paused indexation of HELP and FEE-HELP debts until mid-2025, providing temporary relief to the 3 million Australians with student debt.
The policy will be backdated to June 1 2023 which means last years 71 per cent indexation will be lowered. On 1 June each year indexation is applied to the part of an Australians HELP debt that has remained unpaid for more than a year.
Similar to interest your HELP debt will grow. Australian former students will pay an average of 1700 more on their HELP debt over the next decade if the paused indexation is not made permanent, according to the Grattan Institute.
Find out about government study loans including HECS-HELP and how to make repayments.
About 3 million Australians hold student loans at an average debt of 26500 and the measure would cut around 820 million from the governments revenue.
Follow the links below for the specific thresholds and rates you need.
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