Under HELP, repayments begin to be deducted from your salary at just 1 per cent this financial year once you earn $46,620. This ratchets up 10 per cent if your income hits $136,740.
While you used to be able to escape repayments in periods where you were living overseas, worldwide income now counts, and the same loan contributions are required.
Still, a HELP debt is the cheapest you can get as there is no interest charged. It grows only at the rate of inflation, which today is exceptionally low at just 1.1 per cent in the year to March.
Crucially, there is no time limit to repay your debt.
However, what does a lingering HELP debt mean for the rest of your financial life?
Ability to get a home loan
Firstly, your credit score is una…
Read the full article at: https://www.smh.com.au/money/borrowing/how-university-fee-debt-can-affect-your-ability-to-get-a-home-loan-20210625-p584ct.html
