How Re-payments are Made: HECS-HELP Loans

What is HECS-HELP?

Australian government looks towards providing better education and a bright future to their students. But sometimes, the knowledge comes at a cost which students cannot pay and pursue their studies. At this point, the government provides loans to the students to carry on with their studies. But this also means that the loans are to be re-paid. The government makes sure that every student who has taken any loan is liable to pay back to the government as soon as they can earn for themselves. More information can be viewed at But the question arises, how will the re-payments be made?


One thing that is to be kept in mind is that HECS-HELP is not similar to bank loans. Unlike bank loans, the HECS-HELP loan is to be paid only when the student has an income. It means that the loan payment is to be made at an absolute scale depending upon the income level. The re-payment is scheduled from 1-10% as per the income. Also, the re-payments are free of charge, and the government does not impose any interest. But after every 11 months, the debts are held at the present consumer price index. The table for re-payment schedule is present at

HECS makes sure that all the payment is re-paid. There are two types of re-payments for debt clearance. These are:

  • Compulsory Re-payments: Compulsory payments are to be re-paid through the employer by withholding the tax from the employee’s salary. In this way, the re-payment of the loan is covered through the withheld tax. For this to occur, the employee must inform his superior or employer about his outstanding HECS debt.
  • Voluntary Re-payments: Payments can be made at any time. It is not essential to wait for being employed and then pay off loans if there is any incoming revenue source. Students should make sure to keep track of their receipts for tax deductions. This will also help them in reducing compulsory re-payments.

Advance RE-Payments:

The Australian Taxation Office (ATO) makes the schedule for payments that are to be made. Today, it doesn’t matter if the loans are paid in advance or later. If the loans are paid earlier, there are no particular incentives that the government might provide. Everyone should focus on the fact; the most significant debt is to be paid as soon as possible, knowing the interest rates are lower.

Taxes and HECS:

Anyone looking for loans must take into consideration the re-payment obligations. The re-payment rate depends on the scalable income, and the debt continues to rise due to indexation. When looking for a HECS loan, a TFN (Tax File Number) is required to access it. TFN can be acquired through Australia Post. One must know their debt balance. They can learn it through ATO by providing them TFN, or they could log in on myGOV and look for an online account statement that would present their remaining balance. The debt can be cleared through taxes because HECS will stay until all balances are cleared.