HECS debts rise again, but not as sharply as last year

Changes to HECS and Help student debts have been announced by Labor

The repayment of HECS-HELP loans is tied to indexation calculated by combining the consumer price index (CPI) and the wage growth in the previous financial year.

Every June, HECS debts are indexed and bumped up a few percentage points to make sure the amount owed keeps up with inflation.

Indexation is applied to your HECS debt every year on June 1. In 2023, student debt increased by 71 per cent, the highest increase in more than a decade.

However, the increase for 2024 is expected to be significantly lower, at around 3.9 per cent.

This is still higher than the rate of inflation, which is currently at 2.8 per cent.

The changes to HECS and Help student debts were announced by Labor as part of its election campaign.