Financial advisers warn low inflation combined with the government’s move to strip incentives for voluntary repayment means borrowers will be even less inclined to proactively repay student debt.
The federal government is bracing for the HECS-HELP program to blow out by 560 per cent over the next decade.
However, it has eliminated the 10 per cent discount given to those who pay up front and the 5 per cent bonus for those who repay voluntarily beyond the salary-linked annual requirements.
AMP financial planner Andrew Heaven said the no-interest HECS-HELP loan indexed annually to con…
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