Do HECS-HELP loans have interest? (1 Viewer)

[gunner94]

Does HECS-HELP loans have interest? If so, how do they calculate it?

 

[Rafy]

No, but it is indexed to the CPI.

 

[gunner94]

What do you mean by that?

 

[Bobbo1]

It follows the rate of inflation each year, so roughly it might be increasing by around 3% each year which is very reasonable

 

[gunner94]

Is it better to pay up front first or obtain a loan?

 

[OzKo]

Is it better to pay up front first or obtain a loan?

You do get a small discount if you pay up front but I think that you could do so much more with that money now (e.g. invest) than paying off something immediately.