I guess I’m stupid. I didn’t realise they changes the interest rates on HECS. Is it true, you basically should pay it off ASAP because the interest now is massive (I think it says 7% on mygov). I always understood HECS was almost interest fee so I just left it for a long time. Now I’m desperately trying to pay it off quickly so I don’t have the compounding debt.

  • cccc@lemmy.world
    1·
    1 year ago

    Each year it compounds. They announce it in March and apply it in June.

    So you have balance +7% now Next year you will have balance +7% - any payments taken from your tax return this year + new rate

    Hope that makes sense.

    I had a debt for over ten years and do remember seeing it index down near the start of it so it is possible, but very improbable.