HECS mythical whispers are floating around the student community, whether a student or a graduate, HECS repayment myths confuse you. 

Well, you’re not alone.

Generally, students burdened by educational loans are in a state of unease due to their debts. They hear news and myths about any changes to HECS regulations and they lose it. In a split second, these myths spread and cause an alarming situation among students and HECS borrowers. 

But are these myths true?

Put your concerns to rest, mate.

I’m going to shed light on these HECS repayment whispered myths. Are these true or not? I’ll provide you with authentic information to ensure you have got a clear understanding of the process. 

Let’s sort out the facts from the fiction and deeply dive into the myths surrounding HECS repayments.

Hecs Repayment myths

Repaying HECS debt leads each student to confusion and unnecessary worry. I’m going to debunk HECS repayment myths below.

Myth 1: Debt Pass On To Your Parents/ Family

Debt passes on to your family” This sentence puts every student in worry. Have you ever tried to confirm whether this myth is True or not? 

Well, Let me tell you, it’s one of the biggest Hecs Repayment myths. Debt will not be passed to your parents.

Debt will die with you. 

Yes, you heard that right!

Your family will not be responsible for your Debt. If you die without repaying HECS debt, it will be taken up to the day of your death. 

Hecs Repayment myths
Wait, I’ve another update for you. 

Check if your assessment includes a compulsory HECS debt repayment. In that case, HECS debt will be paid out through your property. 

Otherwise, Debt will be written off for the rest of the year. 

Myth 2: You cannot live and work overseas 

Fortunately, this myth isn’t true. You’re only responsible for paying for HECS debt, whether from overseas or in Australia. 

HECS debt is income-based; the Australian govt will charge according to your yearly income regardless of your location. 

There’re certain circumstances may affect your HECS debt obligation while living overseas. 

Hecs Repayment

Give your income report to ATO if you plan to travel for more than 183 days or more. 

Pay attention to HECS debt repayment; you’ll be panelized up to $3,600

Ensure you have an active my-Gov account to repay debt and get benefits from government services like Centrelink, Medicare etc., from abroad. 

Note: If you earn below the repayment threshold, you must submit non-lodgement advice with ATO. 

Myth 3: First-Year UNI Doesn’t Count

The day you fill out the HECS debt form, Debt will count, regardless of your university year. HECS allows students to take out loans for their studies. The first-year university doesn’t count as one of the biggest misconceptions. 

Students start repaying Debt once their income meets a predefined threshold by the government. When their income exceeds, their debt amount will be counted from 1st day to the last day. 

Don’t take your HECS debt easy. The first year’s Debt will be included in the total amount of HECS

A specific percentage of your income will be deducted through the taxation system when your income surpasses the threshold. 

You’re not required to repay Debt from the 1st year. But the sooner you start paying HECS debt, the sooner you will be Debt free. 

Myth 4: I’ll Be Paying Off My HECS-Help Debt For The Rest Of My Life

The HECS-Help loan program allows students to take loans for their studies which they can repay later. Paying off Debt for the rest of your life is not true. 

But in a few cases, HECS debt may be a long-term financial commitment. 

The earlier you repay your Debt, and you’ll get relief from the indexation rate. 

Most students are concerned about how long it will take to repay their Debt. 

Well, the answer is quite simple. 

The Australian government loan program specifies a threshold amount; you only need to repay if you meet that threshold. 

You must be thinking, what if my income falls below this threshold? 

Then it’s obvious you will only repay Debt once you reach a defined income limit. 

Note: Paying off your HECS debt earlier is worth it. The repayment ranges from 1% to 10% of your income. 

Myth 5: I’ll Never Find A Job After Graduation

Students burdened by the financial responsibility of repaying HECS debt make them worry about their job. The pressure of repaying the loan is over whelming, and their confidence decreases. 

Trust me; it’s not true that you’ll never find a job after graduation. Stop worrying about it. 

Learning valuable skills can increase your chances of getting jobs during your degree. You can also jump into internships to get practical experience. In this way, you can easily create your gateway to future employment. 

The HECS repayment loan system will always be generous to you. Gradual repayment through income-based schemes is a big relief. 

Make sure you make an effort from the 1st day of university. Don’t skip your lectures. Your job is not guaranteed, but you can achieve a secure future by adopting the right approach, dedication and persistence.

Myth# 6: There’s no interest on your HECS debt

 The HECS-HELP debt program does not accrue any interest, distinguishing it from traditional loans.

HECS is based on an indexation system applied by the Australian government according to CPI. The CPI reflects the rising cost of goods and services in the economy

Your HECS-HELP debt

Indexation percentage is added to your debt, ensuring your debt amount remains constant. By the Indexation process, the Australian government ensures that the repayment of your HECS debt reflects the economic circumstances in which the debt was incurred.

HECS repayment isn’t directly influenced by indexation. The Australian government adjusts the income threshold at which repayment is calculated.

Indexation is quite different from interest, and it’s relatively low compared to interest on traditional loans.


The HECS-HELP program makes the students’ lives easier. Stress overcomes students when they hear these misconceptions. 

Don’t believe in these Hecs Repayment myths, which cause alarming situations for you. Instead, you should focus on your education and invest time in learning valuable skills to secure a secure future. 

Paying off HECS debt early is beneficial. The government loan program does not burden you due to its income-based scheme. 

I hope now you won’t believe these Hecs Repayment myths. In case you’ve any queries, write them down in the comment box. 


Do you pay back HECS while studying? 

Actually, you’re only required to repay HECS while studying once you start making a certain income. 

Should you pay off your HECS debt early?

Yes, you should pay off your HECS debt ASAP. Repaying HECS debt early can save you from indexation addition to your Debt. 

Is having a HECS debt a bad idea? 

No, it’s not bad at all. According to ATO data, more than 3 million people have HECS debt. HECS will only leave a negative impact when you consider it as a financial burden. 

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