On Monday, the Hecs (Higher Education Contribution Scheme) repayment threshold fell to the lowest it has ever been.
From now on, anybody earning over $45,881 a year will have to start repaying their student loans effective immediately.
Two years ago, the repayment threshold was $56,000, but Australias Coalition government lowered that to $52,000 last year as a budget-saving measure, and it has now been lowered again.
How much will I have to pay?
Its a common misconception that you only start paying your Hecs debt once you graduate. In fact, you start paying it the moment your income goes over the threshold.
If youre just over the cut-off, you will have to pay 1% of your total income. And thats pre-tax, not after.
So if you earn $45,88…
Read the full article at: https://www.theguardian.com/australia-news/2019/jul/02/hecs-debt-repayment-changes-why-more-people-will-be-forced-to-pay-off-student-loans
