HECS-HELP vs Private Student Loans: What’s Better?
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:...