HECS Debt Relief: Millions of Australians to See Loans Slashed in November & December
Millions of Australians with Higher Education loan Program (HELP) debts, including those with HECS loans, will have 20 per cent of their balances reduced starting in mid-November. The government estimates approximately three million people will benefit from the one-off cut, which will be backdated to balances as of June 1, before indexation was applied.
The reduction is aimed at easing financial pressure, particularly for younger Australians, with around 70 per cent of student debt held by those aged 35 or under. Individuals with an average debt of $27,600 will see $5,520 wiped from their balance.
The Australian Taxation Office (ATO) will begin applying the cut from mid-November, with roughly half of eligible borrowers experiencing the reduction by the end of the month. The remaining borrowers will see the change applied by mid-December.
The debt relief will be automatically applied – no action is required from borrowers.However,those who have fully repaid their student loans and have no outstanding balance as of June 1,2025,will not be eligible for the reduction.
Australians can check their current loan balance by linking their myGov account to the ATO’s online services: https://my.gov.au/.
The initiative is expected to cost the government around $16 billion, on top of the $3 billion already removed following a change to indexation, which now ties student loan increases to the lower of the wage price index or the consumer price index.
