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How much HECS-HELP do I pay? An overview of HECS in Australia
If you’re considering higher education beyond high school, there are fees you will likely need to pay. This is where HECS and HELP come in. We take a look at Australia’s student loans system and how much repayments are depending on your income.
10 Jan 2025
If you’re considering higher education beyond high school, there are fees you will likely need to pay. This is where HECS and HELP come in. We take a look at Australia’s student loans system and how much repayments are depending on your income.
For a large number of Australian high school graduates, university is the next step in their progression to a professional career. It can also be a stepping stone for adults looking for a career change or advancement in their field.
University courses, however, usually come with a hefty price tag. One way the government is supporting higher education pathways is by offering eligible students an interest-free loan to help pay course fees upfront, with the debt being payable once they have gained employment and started earning a certain amount.
We take a look at how these loans work and answer common questions including what and how much HECS-HELP covers, how to apply for HECS-HELP, and how much HECS-HELP you will pay.
What is HECS and HELP and who is eligible?
HELP is the government’s Higher Education Loan Program which provides loans to eligible students to help pay for their study. There are five different types of loans available and, according to the Study Assist website, each loan has specific purpose and different eligibility criteria.
These loans include:
- HECS-HELP (student contribution fees)
- FEE-HELP (tuition fees)
- SA-HELP (student services and amenities fees)
- OS-HELP (overseas study expenses)
- STARTUP-HELP (fees for a ‘Startup Year’ course).
What does HECS-HELP cover?
There’s a cap to how much you can borrow through HELP loans, the limit depends on what you’re studying and it changes each year. Generally, a HECS-HELP loan covers part or all of a student’s tuition fees; however, it cannot be used for any additional study costs such as accommodation, travel, or supplies such as text books or equipment. The HELP loan limit for most students is $121,844 in 2024 but will increase to $126,839 in 2025.Students studying medicine, dentistry and veterinary science or an eligible aviation course have a higher limit. In 2024 it is $174,998 and in 2025 it will go up to $182,172.Keep in mind this limit includes all HELP loans, not just HECS.
Am I eligible for HECS-HELP?
To be eligible for a HECS-HELP loan, you must:
- be enrolled in a Commonwealth supported place (CSP)
- be an Australian citizen, New Zealand Special Category Visa (SCV) holder, permanent humanitarian visa holder or Pacific engagement visa (PEV) holder, and meet residency requirements (including studying at least part of the course in Australia)
- submit an electronic Commonwealth Assistance Form (eCAF)
- to your university or course provider before the census date
- have available HELP balance
- have sufficient Student Learning Entitlement available
- be assessed as a genuine student and as academically suitable for your unit(s) of study
- not undertake more than two years’ worth of higher education study in 12 months unless your provider has approved you to take on more
What are HECS-HELP fees?
HECS-HELP does not carry any interest. However, the government does apply indexation to the portion of your HELP debt that is older than 11 months on 1 June every year.
The indexation varies from year to year. It used to be based on the Consumer Price Index (CPI) but legislation was passed in November 2024 to change the way it is calculated. Indexation will now be in line with either CPI or the Wage Price Index (WPI) – whichever is lower.
This change has been backdated to 1 July 2023 and Education Minister Jason Clare estimates this will wipe $3 billion of student debt for three million Australians.
In 2023, HELP debts were indexed at 7.1% but the indexation will now be reduced to 3.2%. The indexation for 2024 will also be reduced from 4.7% to 4.0%.
The changes mean an individual with an average HELP debt of around $27,000 will see around $1,200 wiped from their outstanding HELP loans, according to Mr Clare.
How much HECS will I pay?
Your HECS-HELP repayments depend on your income after you graduate. As a general rule, the more you earn, the higher your repayments will be. The Australian Taxation Office (ATO) will calculate your total income for the year when you do your tax return and will tell you how much your compulsory repayment will be.
2024-2025 loan repayment income thresholds and rates
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| Repayment income (RI) thresholds |
Repayment rate (% of repayment income) |
|---|---|
| Below $54,435 | Nil |
| $54,435-$62,850 | 1.0% |
| $62,851-$66,620 | 2.0% |
| $66,621-$70,618 | 2.5% |
| $70,619-$74,855 | 3.0% |
| $74,856-$79,346 | 3.5% |
| $79,347-$84,107 | 4.0% |
| $84,108-$89,154 | 4.5% |
| $89,155-$94,503 | 5.0% |
| $94,504-$100,174 | 5.5% |
| $100,175-$106,185 | 6.0% |
| $106,186-$112,556 | 6.5% |
| $112,557-$119,309 | 7.0% |
| $119,310-$126,467 | 7.5% |
| $126,468-$134,056 | 8.0% |
| $134,057-$142,100 | 8.5% |
| $142,101-$150,626 | 9.0% |
| $150,627-$159,663 | 9.5% |
| $159,664 and above | 10% |
Source: Australian Taxation Office, accessed 18 December 2024. The repayment income includes taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt foreign employment income.
How do I apply for HECS-HELP?
If you intend to enroll in an eligible course, you can apply for a HECS-HELP loan by submitting an electronic Commonwealth Assistance Form (eCAF) to your course provider. To do this, you will need:
- your tax file number, or a certificate of application for a tax file number
- your Unique Student Identifier (USI).
How do I pay off my HECS-HELP debt?
Once you are enrolled, your course fees will be added to your student debt after the census date, which can be a few weeks into the semester. This means even if you do not finish the semester, you will still carry the debt. There may also be extra academic and financial penalties. Census dates vary across different courses or providers, so it’s a good idea to check the date for your course.
Once you begin earning an income over a certain threshold, you are required to repay a percentage of your salary towards your debt. This is taken automatically from your pay if you are an employee and may also be payable after you complete your tax return, depending on your compulsory repayment rate. You can also choose to make voluntary repayments on top of your compulsory repayments.
You are still obligated to pay off your debt if you leave Australia and commence employment in another country. Before leaving, you must submit an ‘overseas travel notification’, required if you intend to spend more than 183 or more days in any 12 month period overseas, as well as lodging a ‘worldwide income’ or ‘non-lodgement’ advice via ATO online services. You can find more information on repaying your loan from overseas on the ATO’s website.
How to check how much HECS-HELP you owe?
The simplest way to check how much you owe on your HELP loan is through your ATO Online Services in your myGov account. Alternatively, you can call the ATO on 13 28 61.
If you want to check your available HELP balance (the amount you are still able to borrow under the HELP loan limit), visit the myHELPbalance website.
You will need your USI or Commonwealth Higher Education Student Support Number (CHESSN), student ID number and personal details to login. You can find your CHESSN on your Commonwealth Assistance Notice (CAN), which is a notice given to you by your education provider for the enrolled studies you have applied for HECS-HELP at the start of each study period. Your education provider will either send the CAN through email or make it available to you on your student portal.
Featured image source: Jacob Lund/Shutterstock.com
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
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