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.
- Finder analysis reveals the indexation rate is likely to average at 4.75% on June 1 for the 2023–2024 financial year – the second highest we’ve seen since 1990.
- This means the average Australian with student debt could see themselves paying $1,258 more a year when indexation comes into effect 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 looking likely to be 4.0% in June 2024, meaning repayments will average $1,258 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.
| Year | Indexation rate | Indexation applied to average HELP debt ($26,494) | Indexation applied to $30,000 HELP debt | Indexation applied to $40,000 HELP debt | Indexation applied to $50,000 HELP debt |
|---|
| 2022 | 3.90% | $1,033 | $1,170 | $1,560 | $1,950 |
| 2023 | 7.10% | $1,881 | $2,130 | $2,840 | $3,550 |
| 2024 (estimate) | 4.75% | $1,258 | $1,425 | $1,900 | $2,375 |
| Source: Finder | | | | | |
Source: Finder's analysis. Figures rounded to the nearest dollar
