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Are student loans too big?

Australia’s approach to student loans differs greatly from the US, where debt often reaches USD $37,693 and can take 20 years to repay. In Australia, most students owe between $20,000 and $45,000, repaid in around 8 years on average. The HECS-HELP system allows eligible students to cover tuition, with repayments starting at an income threshold of $54,435.

Proposed Changes to HECS-HELP

The government is proposing reforms to ease loan burdens:

  • Indexation Adjustment: Linking the rate to the lower of CPI or WPI, backdated to June 2023.
  • Increased Repayment Threshold: Raising it to $67,000 in 2025-26, applying only to income above this amount.
  • 20% Loan Reduction: A one-time reduction on loans before June 1, 2025.

Conclusion

These changes, if passed, could make student loans more manageable, easing the financial load for Australian graduates.

If you have any questions regarding the above information, please do not hesitate to contact our office to speak to one of our team.

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Reshika Kumar

Administration Officer

With her kind, caring and approachable nature, Reshika never fails to provide a positive, welcoming experience for our clients, assisting them as they walk in our door or call our office. She understands the power of customer service and is always willing to lend a hand.

With her fun and relaxed personality, Reshika is incredibly creative, especially when it comes to finding solutions for evolving challenges, from financial matters to marketing requirements and beyond. Holding a Masters of Business Administration with a major in Marketing and significant experience in the banking industry, Reshika has a unique combination of skills which makes her a real asset to Fortis.

Reshika is motivated to reach new heights, take risks and develop her career by working alongside Bernadette, our Client Administration Manager, and having the opportunity to learn new things such as new platforms and procedures.

Reshika is passionate about fitness and does not miss an opportunity to take advantage of the gym. Despite Reshika’s relaxed personality it all goes out the door when card or board games are involved!