Quick summary
- The average HECS debt was $24,771 in the 2021–2022 fiscal year, according to ATO figures, up from $23,280 in 2019–20.
- The 2023 HELP debt indexation of 7.1% is the highest on record in over a decade, up from 3.9% in 2022 and 0.6% in 2021.
- HELP debt repayments will average $1,760 a year when indexation comes into effect on 1 June 2023.
- Australians in their 20s will be hit the hardest with an average annual repayment increase of $2,069.
- The number of people with debts above $50K is close to 10% of all debtors (2020–21).
Student loans Australia
- The average HECS debt was $24,771 in the 2021–2022 fiscal year. This is up from $23,280 in 2019–20, according to ATO figures.
- There were 2.9 million people with outstanding HECS-HELP debt in 2020–21.
- The total amount of outstanding student debt hit $68.7 billion in 2020–21, up from $66.4 billion in 2019–20.
- The number of people with debts above $50K is close to 10% of all debtors (2020–21) and the highest student debt amount held by 1 person is over $700K.
- The government reduced the HELP loan limit to $113,028 for the majority of students. Those studying veterinary science, medicine, dentistry or other eligible courses have a limit of $162,336.
- 68% of those with HELP debt are concerned about their ability to pay their student debt.
- Shockingly, 14% 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 will go up to 7.1% in June 2023, meaning 3 million Australians will be hit with higher payments. Once indexation comes into effect HELP debt repayments will average $1,760 a year.
- Graduates in their 20s, who have a median debt of $29,138, will be hit the hardest, with an average increase of $2,069.
- The 2023 HELP debt indexation is the highest on record in a decade, up from 3.9% in 2022 and 0.6% in 2021.
- The 7.1% indexation will add about 6 months to the average student's repayment time, according to ANU analysis.
- Inflation means students faced paying off a combined $1.9 billion of extra debt in 2022, with that figure set to increase by another $1.6 billion in 2023.
Analysis based on potential indexation rate figures
3.90% | $966 | $1,170 | $1,560 | $1,950 |
7% | $1,734 | $2,100 | $2,800 | $3,500 |
7.20% | $1,784 | $2,160 | $2,880 | $3,600 |
7.50% | $1,858 | $2,250 | $3,000 | $3,750 |
Source: Finder's analysis. Figures rounded to the nearest dollar