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Everything you need to know about the Australian government’s HECS-HELP loan scheme.
Jun 15,2025
HECS-HELP is a government-backed student loan that supports eligible students in Commonwealth Supported Places (CSPs) by covering their tuition fees. For many Australians, it’s the pathway to study now and pay later—so you can invest in your future without upfront financial stress.
HECS-HELP is part of the Higher Education Loan Program (HELP), designed to assist students enrolled in subsidised university places. It enables you to defer your student contribution, which the government pays to your institution on your behalf. You then repay the loan through the tax system once you start earning above a minimum income threshold.
It’s a flexible and inclusive way to access higher education and support long-term career goals—especially for those balancing study, work, and life commitments.
More details can be found on the StudyAssist website.
Repayments begin once your repayment income reaches the minimum threshold set for the financial year. For 2025–26, that threshold is $56,156.
Your loan repayments are made automatically through the ATO, based on a sliding scale relative to your income. Here’s how the repayment rates work this year:
Repayment income (RI) thresholds | Repayment rate (% of repayment income) |
---|---|
Below $56,156 | Nil |
$56,156–$64,837 | 1.0% |
$64,838–$68,726 | 2.0% |
$68,727–$72,851 | 2.5% |
$72,852–$77,222 | 3.0% |
$77,223–$81,855 | 3.5% |
$81,856–$86,766 | 4.0% |
$86,767–$91,973 | 4.5% |
$91,974–$97,491 | 5.0% |
$97,492–$103,341 | 5.5% |
$103,342–$109,542 | 6.0% |
$109,543–$116,115 | 6.5% |
$116,116–$123,081 | 7.0% |
$123,082–$130,466 | 7.5% |
$130,467–$138,294 | 8.0% |
$138,295–$146,593 | 8.5% |
$146,594–$155,388 | 9.0% |
$155,389–$164,711 | 9.5% |
$164,712 and above | 10% |
HECS-HELP debts don’t charge interest, but they are indexed annually on 1 June to maintain value against inflation. For 2025, the **indexation rate is 3.2%**.
This indexation applies only to the unpaid balance—not to any new loans or upfront payments.
After receiving an offer for a CSP course, you’ll be asked to complete an electronic Commonwealth Assistance Form (eCAF). This must be submitted before the **census date** for your study period.
The eCAF allows you to choose whether you wish to defer your student contribution using HECS-HELP or pay upfront.
The census date is the official deadline to finalise your subject enrolment and HECS-HELP arrangements. If you withdraw after the census date, you may still incur the debt—even if you don’t complete the unit.
Each university or provider sets their own census dates for each study period. Check these carefully and add them to your calendar.
Yes, voluntary repayments can be made at any time through the ATO using BPAY or online banking. These repayments are in addition to your compulsory tax repayments and can reduce your overall loan balance faster.
You can view your loan balance and payment history by linking your ATO account in MyGov. This portal also shows any indexation applied to your loan.
Yes—in some limited situations, such as serious illness or special circumstances that prevent course completion, you may be eligible for partial debt cancellation. These applications must go through your education provider, or in hardship cases, the ATO.
Read more about cancellation and hardship options on the StudyAssist site.
Looking for a course supported by HECS-HELP? Explore a curated list of eligible university and online study options.
This content is accurate as of the 2025–26 financial year and may be subject to change. For the latest updates, visit the official StudyAssist website.
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