Pain on pain: CPI indexation triggers sharp increases to student debts

Students come under increasing financial pressure from CPI indexation on their HECS-HELP debts Credit: Chris Ison/PA

More than 3 million Australians are facing steep increases to their higher education debts because of Australia's high rate of inflation. HECS-HELP debts are indexed each year to the consumer price index and this year's indexation rate is 7.1 per cent.

---

Key Points

• HECS-HELP system has enabled thousands of Australians to get a tertiary education.
• HECS-HELP debts are indexed each year to the consumer price index and this year's indexation rate is 7.1 per cent.
• It means someone with a typical debt of $25,000 faces an increase of $1,775. But some graduates say their debt burden is much higher.