Yahoo Finance Millions in HECS debt wiped for thousands of Aussie students
Nearly 14,000 Aussie students will have part of their HECS debt waived.
Thousands of current and former students will have part of their HECS debt waived by the government, thanks to a record-keeping error.
Around 13,748 individuals from 104 higher education institutions were affected by the error, which meant they were unable to see their updated debts on the Australian Taxation Office’s (ATO) website.
The Australian government has decided to waive annual indexation for impacted students for previous years and 2023. This will wipe a collective $5.4 million from people’s student debt.
Have you had your indexation waived? Share your story with tamika.seeto@yahooinc.com
With indexation rising 7.1 per cent this year and the average student debt sitting at $24,770, this could potentially save students thousands of dollars. This year’s indexation increase added an extra $1,759 to the average Aussie’s debt.
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Also read: How your HECS-HELP debt will affect your tax
What was the error?
Students are able view their loan debts through the ATO website via myGov. This includes their indexation amounts and repayments.
This year, the government discovered some students were unable to view their loan records with the ATO, The Daily Aus reported. This meant they couldn’t see their debts in real time and before they increased with indexation.
The reason for the error was that there was missing information given to the Department of Education by higher-education providers. This included missing student Tax File Numbers and errors regarding upfront loan discounts.
How can I tell if I was impacted?
A Department of Education spokesperson said the department and higher-education providers were contacting impacted students.
“[We] have been contacting affected individuals to ensure they are aware of the issue and understand the support options available to them,” the spokesperson told Yahoo Finance.
“To ensure affected individuals are not unfairly financially disadvantaged, the Australian government will waive annual indexation on the delayed loans for previous years and 2023.”
Students can also find more information on the Department of Education’s website.
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