Illustration of a hand pulling a chain labeled 'Debt' with the text 'What Happens to HECS Debt When You Die,' symbolizing the burden of unresolved student loans

When someone with a HECS-HELP debt in Australia passes away, their debt is cancelled and not passed on to their family or estate. No one else is responsible for paying it. If they earned enough that year to make repayments, the ATO may take payments up until their passing, but any remaining debt is wiped out.


What is HECS-HELP?


HECS-HELP is an Australian government loan that covers university tuition fees for eligible students. Repayments are made through the tax system once the student earns above a set income threshold. The loan has no interest but is adjusted for Inflation.


Is my HECS-HELP debt still repayable after I die?



A graduate in a cap and gown holding a diploma, contemplating the future with the text 'What Happens to HECS Debt When You Die,' representing student loan concerns after graduation.

No, your HECS-HELP debt is cancelled when you die. It is not passed on to your family or estate, and no one else is responsible for repaying it. However, any repayments due from your income before your death may still be collected by the ATO.


What about my university loans?


University loans like HECS-HELP in Australia cover tuition fees and are repaid through the tax system once your income exceeds the set threshold. Repayments are based on your income level. The loan doesn’t have Interest but is adjusted for inflation. If you never earn enough, you won’t need to repay it. When you pass away, any remaining debt is cancelled and won’t be passed to your family.


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NSW 2034
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