Millions of Australians are waking up this morning to a 7.1 per cent indexation on their HECS-HELP loans this morning.
The average debt for about the three million Australians receiving help is $24,770.75 which means the indexation will add a further $1,758.72.
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It aligns with the same amount the consumer price index (CPI) rose in March 2023.
Indexation is applied every year on June 1 to students’ debts, so while it’s not a one-off occurrence, the hefty increase will be felt.
Last year, the indexation was 3.9 per cent, while the year before that, it was only 0.6 per cent.
With the 7.1 per cent hike, a study by the National Tertiary Education Union (NTEU) found some four-year degrees could end up costing over $100,000 once the debt is paid.
The study also revealed it could take female students 36 years to pay off their loans – four years more than male students.
Unlike other loans, HECS-HELP debts are interest free, but the Federal Government indexes the loan each year to align with the CPI, or inflation.
NTEU national president Dr Alison Barnes told the Herald Sun rising tertiary education costs could stop future students from enrolling.
“We’re worried the rising cost of degrees could discourage prospective students, especially people from disadvantaged backgrounds, from enrolling,” she said.
“We should be doing everything we can to ensure everyone who wants to study has an equal opportunity to, regardless of your background.”
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