On Money Diaries,a portfolio director who makes $270,000 a year and spends some of her money this week on dry shampoo and hair dye.
It has become “sadly fashionable” to assume students will take out loans to pay higher education fees,but one university head admits he wouldn’t have paid the same price.
With HECS indexation at 7 per cent and no suggestion inflation will drop much in the next year,it may make sense to pay it off with a redraw on your mortgage.
Millions of graduates have made voluntary HECS debt repayments to avoid the indexation hike. But experts say it is still better to pay off HECS debts slowly.
But Education Minister Jason Clare has hosed down what he described as misguided debate about HECS,saying scrapping indexation on student loans would cost $9 billion.
The rush to pay off student debt before next week’s increase has seen many look for other ways to settle their debt,including a “hack” circulating on TikTok.
Voluntary repayments of student debt should be paid at least four business days before June 1 to give adequate time for payments to be cleared
There’s an argument to be made that students knew what they were getting into. But a 7.1 per cent indexation was not in most – if any – of our calculations.
Three million Australians with student loans will likely see the size of their debt increase by at least 6 per cent on June 1,more than double the ‘standard’ increase.
The upfront discount for HELP loans,formerly known as HECS,has ceased,while the cost of a degree is rising. Were students even aware of the discount to begin with?
More Australians are paying off their student loans to avoid the rise in repayments,but many are still unaware of how to track their debt and what happens when it’s paid off.