Credit Smart Solutions

HECS-HELP vs Private Student Loans: What’s Better? If you’re a student in Australia, you’ve likely heard about HECS-HELP — the government loan scheme for higher education. But is it the best option for you, or should you consider private student loans? In 2025, here’s what you need to know about both options. What Is HECS-HELP? HECS-HELP is a government-funded loan program that allows students to borrow money to pay for their tuition fees. The great thing about HECS-HELP is that you don’t need to start paying it back until your income exceeds a certain threshold (around $47,000 in 2025). The loan is also indexed to inflation, but the interest rate is lower than that of private loans. What Are Private Student Loans? Private student loans are offered by banks and financial institutions. These loans often have higher interest rates than HECS-HELP loans, and you may need to start repaying them immediately, even before you graduate. Advantages of HECS-HELP Deferred repayments:...

Student Loan Repayment Hacks (Australia Edition) If you studied in Australia, chances are you’ve got a HECS-HELP or TAFE loan. While student loans here are income-based and interest-free in theory, they’re subject to indexation — which can catch you off guard. Here are some smart hacks to pay off your student loan faster in 2025. 1. Make Voluntary Contributions Before June 1 Indexation is applied on June 1 each year. If you can make even a small voluntary payment before this date, you’ll reduce the amount that gets indexed. 2. Use Tax Refunds Wisely Instead of splurging, consider putting your tax refund directly towards your student loan. It’s a guilt-free way to knock down your balance. 3. Increase Your Repayment Rate (If You Can) The compulsory repayment threshold in 2025 is expected to be around $51,000. If your income is higher, consider increasing your contributions — it’ll save you in the long run. 4. Treat Your Loan Like a Debt (Because It Is) Many Australians forg...