3 million Australians' HECS and HELP debts reduced by $3bn due to change in loan indexing method.

The federal government is changing the way higher education loans are indexed each year, wiping over $3bn of HECS and HELP debts for 3 million Australians. Mostly HELP loans for university degrees are indexed by the rate of inflation, applied on June 1 each year to the balance of debts. This change will reduce student debts significantly.