Hi everyone,
With HECS indexation soaring to 7.1% scheduled next month, would it be advisable to pay it off before it gets indexed? I have a ~20k HECS debt, and I still have 4 semesters left before graduating. I have more than enough savings to pay it off, around 40k from my previous internships. I'm in a bit of a dilemma whether to invest most of this money (I don't have any investments at the moment) or pay off the HECS, then invest the rest (or keep it in my savings, the interest rate these days seems pretty good).
Thanks for your advice!
It's better to keep some liquid cash for a rainy day than to pay off your HECs. The government can wait. Invest it in something that gives a return that is equal or greater than the indexation rate. Even a return that's slightly less is still better than putting it all into your HECs. Nowhere will you ever get a loan that cheap (relatively) again. That's just my opinion anyway.