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The Australian Government has introduced changes to student loan indexation, reducing debt for over three million current and former students. If you have a Higher Education Loan Program (HELP) loan, keep reading to learn how you might be affected.
What’s changing?
Until recently, student loans were indexed based on the Consumer Price Index (CPI), meaning they could grow significantly each year. The new approach ensures indexation will be based on the lower of either CPI or the Wage Price Index (WPI), meaning student loans won’t increase faster than wages.
This change applies retrospectively from 1 June 2023, reducing indexation for the past two years:
2023: Reduced from 7.1% to 3.2%
2024: Reduced from 4.7% to 4%
What this means for you?
If you had an outstanding student loan on 1 June 2023 or 1 June 2024, your balance is being adjusted automatically by the Australian Taxation Office (ATO).
If you fully repaid your loan after 1 June 2023, you may receive a refund of this excess indexation, provided you have no outstanding tax debts.
How can you check your loan balance?
To see your updated student loan balance:
- Log into myGov and go to the ATO online services portal.
- Select Tax.
- Select Accounts.
- Select Loan accounts.
Learn more about the Student Loan Relief by visiting supportingaustralians.gov.au
