Do you have a study debt or a trade support loan?

Whether you’ve just started out studying, or finished a university or TAFE course years ago, it’s important to understand different types of study loans and how to repay them.

For compulsory repayments, when you start a new job, be sure to tick the box on your tax declaration form to let your employer know you have a HECS-HELP debt. Once you earn above the compulsory repayment threshold of $48,361.00 (for the 2022-2023 financial year) your employer will automatically withhold extra tax from your salary. When I prepare your tax return at the end of the financial year, I will calculate your repayment amount in your tax return.

You may be asked to make compulsory repayments even if you live and work overseas.

You can make voluntary repayments at any time directly to The ATO, to pay off your study loans.

While there is no interest charged on HELP debt, there is an indexation added to the debt every year on June 1st. This year was a significant increase in the rate to 7.1%,. This increase marks the highest indexation rate for HECS/HELP debt in 32 years - courtesy of high inflation. 

Study loans are often called HECS or HELP loans, but there are many different ones known by different names, including:

• Higher Education Loan Program (HELP) – some people call this by the old name ‘HECS

• Vet Student Loans (VSL)

• Student Financial Supplement Scheme (SFSS)

• Student Start-up Loan (SSL)

• ABSTUDY Student Start-up Loan (ABSTUDY SSL)

• Trade Support Loan (TSL).