Heading into Winter last year the Government announced the annual indexation rate for HECs…
7.1%!
Myself and Aussie students across the country shuddered.
We have not seen rates that high on much in our life;
Inflation, term deposits, savings rates…
I ummed and ahhed about whether to pay off more.
In the end my approach matched my hamburger order from my local. The Lot.
This year the Government changed their tune in the May Budget and are looking at tweaking the system.
The new indexation rate will be the lower of wage growth or inflation, they are even going to back-date it to last year (thanks Albo if ya reading).
The changes make any HECs loan a little bit friendly to the students, if Albo can get it through parliament. Once all rates are official I will post about it.
If I had known about these changes I reckon I would have kept my HECs.
Ah well hindsight is always 20/20!