The recent outbreak of high inflation means millions of Australians with student loan debts are facing a 7.1% increase in June.
This is because Help debts (and Hecs, and some other student loans) are re-indexed every financial year using a formula based on the cost of living index.
Relatively recent changes to the Help repayment thresholds mean that when the indexation rate is above 1%, people on low incomes can be making payments that are less than the amount added by indexation – meaning some people see their debt rise despite making compulsory payments.
