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Bec15(I'm new)I'm new
6 Nov 2023

I have commenced a degree in March 2023, I am wanting to make a voluntary payment for the 1st year's fees to avoid interest charges and want to know the latest cut-off to make my payment. I have read that the first 11-months of holding the HELP debt is not indexed but I wasn't sure if that is applied to each semester or the full year?

I have been billed for 2023 subjects on a semester basis so do I assume my 1st semester won't be indexed until Jan 2024 (so I have until Jan 2024 to pay my 1st semester fees without any interest charges accrued) and my 2nd semester will be indexed in June 2024 (so I will pay my 2nd semester fees prior to Jun 2024)??

5,330 views
3 replies
5,330 views
3 replies

Most helpful response

Most helpful reply

RileyATO(Community Moderator)Community Moderator
6 Nov 2023

Hi @Bec15,


There's no interest charged on study loans. Only indexation which is applied to the part of your loan that's older than 11 months as of 1 June.


So any debts applied to your HELP loan before 1 July 2023 will be indexed on 1 June 2024.


To avoid or reduce indexation you can make voluntary repayments. Voluntary repayments are applied to your oldest debts first. So, if you pay off your total loan, or pay off the amounts older than 11 months by 1 June then indexation won't be applied at all. These take about 4 business days to process so we recommend making payments by about mid-May to be safe.


Hope that makes sense? We also have an article you can read about paying your HELP loan.

All replies

Most helpful reply

RileyATO(Community Moderator)Community Moderator
6 Nov 2023

Hi @Bec15,


There's no interest charged on study loans. Only indexation which is applied to the part of your loan that's older than 11 months as of 1 June.


So any debts applied to your HELP loan before 1 July 2023 will be indexed on 1 June 2024.


To avoid or reduce indexation you can make voluntary repayments. Voluntary repayments are applied to your oldest debts first. So, if you pay off your total loan, or pay off the amounts older than 11 months by 1 June then indexation won't be applied at all. These take about 4 business days to process so we recommend making payments by about mid-May to be safe.


Hope that makes sense? We also have an article you can read about paying your HELP loan.

Liked by Bec15
lopu(Newbie)Newbie
5 June 2024

Why is the cutoff date the 1st of June?!


Tax returns are lodged 31st.......


I've just been indexed 4.5% totalling $1,700.


Absolute rout......

RileyATO(Community Moderator)Community Moderator
10 June 2024

Hi @lopu,


Indexation is applied on 1 June as a requirement of the Higher education support act 2003.


While we do look after HELP loans, we don't make the laws. If you're wanting to advocate for change to the way indexation is legislated, you'd be best to contact your federal MP.

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What is the cut-off date for making voluntary HELP debt payment to avoid indexation interest charges | ATO Community