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Calculating Your HECS Debt: A Comprehensive Guide
Understanding the Average Australian HECS Debt
The average student HECS debt in Australia currently stands at $26,494. This figure represents the typical amount of money borrowed by university graduates under the Higher Education Contribution Scheme (HECS).
Impact of Indexation on Your Debt
HECS debts are indexed annually on June 1st. Indexation refers to the process of adjusting the debt balance in line with inflation. In the 2023 indexation period, student debt increased by 7.1%. This adjustment means that the portion of your debt that was over 11 months old on June 1st, 2022, will be indexed at a rate of 3.9%. It's important to note that indexation only affects the part of your debt that is older than 11 months.
Calculating Your Repayment Period
The length of time it takes to repay your HECS debt depends on your income and the amount of debt you have. You can use the online HECS debt calculator to estimate your repayment period. The tool requires you to enter your current HECS debt balance and your annual income. Based on this information, it will provide you with an estimate of how long it will take you to repay your debt.
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