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Student HECS-HELP debt statistics

12% of Australians don’t think they’ll ever be able to repay their student debt.

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By

Susannah Binsted

Updated

Fact checked

Quick summary

  • The average HECS debt was $26,494 in the 2022–2023 fiscal year, according to ATO figures, up from $24,771 in 2021–22.
  • The 2023 HELP debt indexation of 7.1% has now been revised to 3.2% after changes to the indexation method.
  • The indexation rate for the 2023–2024 financial year has been announced at 4.7%– the second highest we’ve seen since 1990.
  • This means the average Australian with student debt will see themselves paying roughly $1,245 more a year on 1 June 2024.
  • The number of people with debts above $40K is close to 21% of all debtors (2022–23).

Student loans Australia

    • The average HECS debt was $26,494 in the 2022–2023 fiscal year. This is up from $24,771 in 2021–22, according to ATO figures.
    • There were 2.9 million people with outstanding HECS-HELP debt in 2022–23.
    • The total amount of outstanding student debt hit $78.2 billion in 2022–23, up from $74.4 billion in 2021–22.
    • The number of people with debts above $40K is close to 21% of all debtors (2022–23).
    • The government reduced the HELP loan limit to $121,844 for the majority of students. Those studying veterinary science, medicine, dentistry or other eligible courses have a limit of $174,998.
    • 63% of those with HELP debt are concerned about their ability to pay their student debt.
    • Shockingly, 12% don't think they'll ever pay their student HELP debt off.

HECS indexation

    • Student HELP debt is technically an "interest-free loan" but it's indexed to keep up with inflation.
    • The indexation rate initially went up to 7.1% in June 2023, meaning 3 million Australians were hit with higher payments. But the federal government has retroactively lowered this to 3.2%.
    • The indexation rate is 4.7% for the 2023-2024 financial year, meaning repayments will average $1,245 a year.
    • The 2023 HELP debt indexation was the highest on record in a decade, up from 3.9% in 2022 and 0.6% in 2021.
  • The 7.1% indexation added about 6 months to the average student's repayment time, according to ANU analysis.

Analysis on indexation rate figures

YearIndexation rateIndexation applied to average HELP debt ($26,494)Indexation applied to $30,000 HELP debtIndexation applied to $40,000 HELP debtIndexation applied to $50,000 HELP debt
20223.90%$1,033$1,170$1,560$1,950
20237.10%$1,881$2,130$2,840$3,550
20244.7%$1,245$1,410$1,880$2,350
Source: Finder

Source: Finder's analysis. Figures rounded to the nearest dollar

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Head of Finder Awards

Susannah Binsted is the head of the Finder Awards program. Previously she was the head of public relations for the international division at Finder. Susannah has a Bachelor of Communication and a Bachelor of International Studies from the University of Technology Sydney. See full bio

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2 Responses

    Default Gravatar
    DisabledJuly 23, 2024

    Can you provide information on what happens to the HECS debt if a HECS law graduate goes on a Disability Pension for an illness without a cure and is never well enough to work and repay the debt please? Can the indexation additions be stopped at all please? Thanks for your answer.

      AvatarFinder
      SarahJuly 29, 2024Finder

      Hi there,

      You may find it worthwhile contacting the government directly about your specific situation. In general, your debt won’t need to be repaid provided your income doesn’t hit the minimum payment threshold, but indexation would continue to be applied each year.

      In 2023, HECS was absorbed into HELP and the scheme is now referred to as HECS-HELP. You can contact them directly via the contacts here.

      Hope this helps!

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