HELP Student Loan Indexation Debt

Study Loan Indexation Increases

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Each year on June 1st, Student Loans have an indexation added to their loans to maintain its real value by adjusting it in line with changes in the cost of living.  Historically these indexations have been 0.6-3.9%. This coming June 1st 2023, the indexation rate being applied to loans will be increased to 7.1%.

As an example, if your student loan is $10,000 then on June 1st it will have a indexation added to the loan debit of $710 (7.1% of 10,000), increasing your total loan liability to $10,710.

The following student loans will have a 7.1% increase in their indexation applied to them.

  • Higher Education Loan Program (HELP)
  • VET Student Loan (VSL)
  • Student Financial Supplement Scheme (SFSS)
  • Student Start-up Loan (SSL)
  • ABSTUDY Student Start-up Loan (ABSTUDY SSL)
  • Trade Support Loan (TSL).

If you’re in a position to pay out or reduce your student loan prior to 25th of May to enable the ATO time to reconcile deposits to your student loan before June 1st and the indexation is applied, it might be worth doing so.

If you want to check the balance of your HELP debt and other student loan liabilities you can view your accounts in the ATO’s online services via myGov.

If you would like any advice relating to student loans please do not hesitate to get in touch.