HECS/HELP debt can be wiped or reduced through a 20% automatic reduction for eligible debts as of June 1, 2025, or by applying for remission due to "special circumstances" (illness, injury, or unexpected hardship). Other options include specific, limited debt waivers for medical professionals in rural areas or extreme, rare cases via the Department of Finance.
The only way to pay your debt in full before your compulsory repayment is due is to make voluntary repayments. Yes, you'll continue to pay the extra towards compulsory repayments until your tax return is lodged.
If you had an outstanding HELP or other student loan debt balance as at 1 June 2025, the Government is reducing your outstanding debt by 20%.
While negative information about your student loans may disappear from your credit reports after seven years, the student loans will remain on your credit reports — and in your life — until you pay them off. You will need to rehabilitate, consolidate or refinance your loan and agree to a repayment plan.
The HECS debt is forgiven at your death
Happily, any outstanding HECS debt is forgiven when at your death.
If you don't pay your HELP loan, you may be fined. Find out more about paying back your loan on the ATO website. These links will take you away from myGov.
Q: Can a debt collector still contact me after 7 years? A: Yes. Even if the statute of limitations has passed, collectors can ask you to pay. But they cannot sue you after the statute expires—unless you reset the clock.
Ignoring student loans can lead to serious consequences—wage garnishment, tax refund interception, lawsuits, and long-term credit damage. While student loans can be overwhelming, there are options to help manage your payments and avoid default.
For English students who started between 2012 and 2022, Welsh students who started from 2012 until today and Scottish students who started from 2007 until today, your loan wipes after 30 years. So I repeat that, English students starters 2012 to 2022, Welsh starters 2012 onwards, Scottish starters 2007 onwards.
PSLF Process
Because you have to make 120 qualifying monthly payments, it will take at least 10 years before you can qualify for PSLF. Important: You must still be working for a qualifying employer at the time you submit your form for forgiveness.
On a $70,000 HECS/HELP repayment income (HRI) in Australia for the 2025-2026 year, you'd pay $450 per year, a significant reduction from previous years, calculated as 15 cents for each dollar over the new $67,000 threshold ($70,000 - $67,000 = $3,000 x 0.15 = $450). This is part of recent changes (effective mid-2025) that lowered repayment rates and raised the starting threshold, meaning you pay less overall.
Debt forgiveness is when a lender or creditor agrees to wipe out all or part of a debt. You may be able to apply if you have unsecured debts, like credit cards, student loans or tax debt. Medical debts and mortgages may also qualify for some types of relief.
Use this 11-word phrase to stop debt collectors: “Please cease and desist all calls and contact with me immediately.” You can use this phrase over the phone, in an email or letter, or both.
While HECS - HELP debts can't be written off, eliminating other debts may give individuals the breathing room they need.
The "777 rule" in debt collection, also known as the 7-in-7 rule, is a guideline under the CFPB's Debt Collection Rule (Regulation F) that limits how often debt collectors can call you: generally no more than seven times in seven days for a specific debt, with a mandatory seven-day waiting period after a phone conversation before another call. This rule, established by the Consumer Financial Protection Bureau (CFPB), aims to prevent harassment by setting presumptions for acceptable call frequency, applying to personal debts like credit cards and medical bills.
Improving your credit in 30 days is possible. Ways to do so include paying off credit card debt, becoming an authorized user, paying your bills on time and disputing inaccurate credit report information.
If you repay your loans under an IDR plan, the end of term balance on your student loans may be forgiven after you make a certain number of payments over 20 or 25 years (240 or 300 monthly payments). Use Loan Simulator to compare plans, estimate monthly payment amounts, and see if you're eligible for an IDR plan.
The minimum repayment threshold has changed from $56,156 to $67,000 in 2025-26. This change has also introduced a system where HELP repayments are calculated only on the income above the new $67,000 threshold rather than repayments being based on total annual income.
Public Service Loan Forgiveness (PSLF) PSLF allows qualifying federal student loans to be forgiven after 120 qualifying payments (10 years), while working for a qualifying public service employer.
Do Federal Student Loans Ever Go Away? Federal student loans may come off your credit report either seven and a half years after the default or seven years after the loan was transferred to the Department of Education. In both cases, the strikes on your credit report will disappear only if you start to make payments.
Fresh Start allows borrowers with eligible defaulted federal student loans to apply for federal student aid so that they may complete their degree. Currently, eligible defaulted borrowers can apply for federal grants, loans or work-study funds through the Free Application for Federal Student Aid (FAFSA) form.
The IRS Fresh Start Program 2025 is a federal tax relief initiative designed to help individuals and small businesses resolve back taxes. It offers structured options like installment agreements, penalty relief, and Offers in Compromise.
The 15/3 rule is a popular “hack” that might help improve your credit score if you pay your credit card bill in two parts, once 15 days prior to the due date and again three days prior to the due date. The theory is that this may reduce your credit utilization ratio, thus helping to improve your credit score.
These debts cannot be prescribed:
Mortgage shortfalls: Only the interest is prescribed after five years. But any action can be taken to collect money borrowed for 20 years. Council tax and some benefit overpayments: They can be enforced for 20 years. Debts to HM Revenue & Customs.
Yes, 609 dispute letters can work. They request the credit bureau to verify the accuracy of items on your credit report. If the bureau cannot provide adequate evidence, the disputed items must be removed. Success varies based on the nature of the dispute and provided documentation.