AU
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Canadian siteA Breakdown of 2024 HELP Repayment Updates for Students
On November 3, 2024, the Australian Government announced its intention to introduce legislation that would see a once-off 20% reduction in every Australian’s HELP (Higher Education Loan Program) debt or other student debt, with that reduction to be applied before the next round of indexation hits on 1 June 2025.
With over 3 million Australians collectively owing over $74 billion in student loans and 70% of borrowers aged 35 or younger, the Government stated that these reforms aim to take the pressure off those with HELP debt, and particularly young Australians.
Would this apply to AIB students?
If you’re studying at the Australian Institute of Business (AIB) and funding your studies through FEE-HELP, you might wonder if these reforms apply to you. Assuming the legislation is passed in the terms proposed, the answer is yes.
The reforms cover all HELP debts (including HECS-HELP, FEE-HELP, STARTUP-HELP, SA-HELP, and OS-HELP), as well as other contingent loan schemes (VET Student Loans (VSL), VET FEEHELP, Student Financial Supplement Scheme (SFSS), Australian Apprenticeship Support Loans (ASSL, formerly Trade Support Loans), Student Start-up Loan (SSL) and ABSSTUDY Student Start-up Loan (ABSTUDY SSL)).
Let’s briefly clarify the difference between HECS-HELP and FEE-HELP:
- HECS-HELP: Loans to assist students enrolled in Government-subsidised places in courses offered by public universities and higher education providers to pay their student contribution amounts.
- FEE-HELP: Loans to assist students enrolled in full-fee paying places at approved higher education providers, such as AIB, to pay their tuition fees for the course. If you’re an AIB student using a HELP loan, this is the type of loan you’re utilising.
You can learn more about all types of loans available from the Australian Government here.
What other significant reforms have been announced?
On November 2, 2024, the government announced other reforms to HELP repayment terms.
Subject to the passing of the necessary legislation, key changes will include:
- Higher repayment threshold: The minimum income threshold triggering mandatory HELP repayments will rise from $54,435 to $67,000 from 1 July 2025.
- Targeted repayments: Whereas previously repayment rates were set as a proportion of total income, repayments will now only be based on income earned above the new $67,000 threshold.
These changes are intended to deliver cost of living relief, especially for lower income earners, by making sure people have more money in their take home pay. However, unless additional voluntary payments are made, repayment periods will be extended. For example, with an average HECS debt of $27,600 (reduced to $22,080 after the proposed 20% discount), the impact of these changes looks like:
| Income | New minimum yearly repayment | New HELP Debt | Years to pay off | Old minimum yearly repayment | Years to pay off prior |
| $60,000 | $0 | $22,080 | N/A | $600 | 46.00 |
| $70,000 | $450 | $22,080 | 49.07 | $1,750 | 15.77 |
| $80,000 | $1,950 | $22,080 | 11.32 | $2,800 | 9.86 |
| $90,000 | $3,450 | $22,080 | 6.40 | $4,050 | 6.81 |
| $100,000 | $4,950 | $22,080 | 4.46 | $5,500 | 5.02 |
| $110,000 | $6,450 | $22,080 | 3.42 | $7,150 | 3.86 |
| $120,000 | $7,950 | $22,080 | 2.78 | $8,400 | 3.29 |
| $130,000 | $9,550 | $22,080 | 2.31 | $9,750 | 2.83 |
| $140,000 | $11,250 | $22,080 | 1.96 | $11,900 | 2.32 |
| $150,000 | $12,950 | $22,080 | 1.71 | $13,500 | 2.04 |
| $160,000 | $14,650 | $22,080 | 1.51 | $15,200 | 1.82 |
| $170,000 | $16,350 | $22,080 | 1.35 | $17,000 | 1.62 |
| Above $180,000 | No change | No change | No change | No change | No change |
Source: ABC News, November 2024
Keep in mind that the above reforms discussed in this article depend on the passage of legislation and would apply to existing student loans as of June 2025 if passed.
Reforms Passed in 2024
In the May 2024 budget, the Government announced its intention to make changes to HELP debt indexation, so that it is based on the lower of the Consumer Price Index (CPI) or the Wage Price Index (WPI). These reforms were passed by both Houses of Parliament in November 2024.
Both the CPI and WPI are calculated by the Australian Bureau of Statistics (ABS) and are used to measure changes in the economy and labour market.
- CPI: Tracks changes in the price of a fixed basket of goods and services.
- WPI: Tracks wage changes and the cost employers incur for labour.
For individuals with outstanding HELP debts in 2023 or 2024 (or both), adjustments have been made following the passage of the legislation in November 2024. This means that if you have a debt that was subject to indexation in 2023 or 2024 you will have likely received a credit based on the difference for the following years:
- 2023 Indexation: Applied on 1 June 2023 at a rate of 7.1%. This has been retrospectively adjusted to 3.2%.
- 2024 Indexation: Applied on 1 June 2024 at a rate of 4.7%. This has been retrospectively adjusted to 4%.
To check your HELP debt, make additional repayments and to check if you have received the indexation credit, please follow the information on managing your HELP loan.
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