The HELP/HECS Debt is calculated using the current CPI and from June 2023 the rate increases to 7.1%.
This is the largest increase we have seen for those who have study debts.
We, as brokers, are hoping the Government will relax the rules once they see how it can affect our current students and past students.
How will this affect your loans? If you are over the income threshold of $48,361, your debt is payable, based on a sliding scale depending upon your actual taxable income. For example, income of $60,000 will mean you need to pay $1500 per year. HECS/HELP Debt is considered a liability for loans, so you may find your personal loan, car loan or home loan is affected by this debt.
Possibly check your HELP Debt. Some previous HELP/HECS Debt was wiped by the Government due to dodgy education institutions offering courses to people with little chance of obtaining employment, and certain people were targeted. It is best to speak to the Australian Taxation Office to discuss your situation to see if you were affected.
Assessing your loan is important, taking into consideration your study debt. Anyone who has started work part way through the year may miss the income threshold. We can assist with this calculation.
Planning your next home, car or personal loan is important so you are educated on the way and understand how lenders will view your debts.
Please Note – this is general information only, and does not apply to any specific situation and is used as a source of education about upcoming changes.
Please call 0403 211 361 or email hello@georgfinancialservices.com.au to discuss your situation in more detail.
