The federal government has wiped $3 billion in HECS-HELP debt from Australian student debt loans after announcing changes to how indexation is applied.
It means former students with an average HECS debt of $27,000 will have about $1200 added as a credit to their outstanding loan.
The indexation change was backdated to June 2023 and those who paid off their HECS debt in 2023 or 2024 after indexation was applied will receive the credit as a refund in their bank accounts.
Legislation passed the Senate last month to change how annual indexation on student debts are calculated in Australia.
Previously, it was based on the Consumer…
