HELP Debt Indexation: Who Qualifies and What You Get
Learn how indexation works on your student debt and how your repayments are managed through the income-contingent system.
This system manages how your student debt is adjusted and how your repayments are handled once you have finished your studies.
Who it's for
This system is specifically for university graduates who have outstanding student loans. If you have completed your studies and still have a balance remaining on your student debt, this framework applies to your account.
What you get
The system uses an income-contingent loan repayment framework. This is designed so that your repayment obligations are linked to your earnings. Instead of being forced to pay a set amount regardless of your financial situation, your repayment amounts are determined by how much you earn in a given year.
What it costs you
There is no upfront fee to be part of this system, but it does cost you money through regular repayments. These repayments start automatically once your income hits the official threshold. Because the system is tied to your income, the amount you pay back will fluctuate based on how much you earn during the financial year.
The catch to know
The most important thing to understand is how indexation works. Many people mistake indexation for interest, but they are different. Indexation is an annual adjustment applied to your total student debt balance. While it is not interest, this annual adjustment increases the overall balance of what you owe, which can change the total amount you will eventually pay back.
How to apply
- Log in to the official portal to view your current student debt balance.
- Monitor your annual income levels to determine when you will reach the repayment threshold.
- Ensure your employer has your correct information so that repayments are managed correctly through your income.
For more information, visit https://www.studyassist.gov.au