Australia’s rising student loan debt once again making life difficult for our young professionals. Graduating the school of hard knocks comes at a cost, the trick is to roll with the punches to get out from under the weight of accumulated University debt sooner rather than later. Although the spiraling debt totals are not as high as those we are seeing for U.S College loans the figures are nevertheless significant so to reduce the burden it certainly pays to be vigilant. Making smart choices with banking options is one step in the right direction. Up to date statistics have revealed that 55-60% of Australian graduates aged 20-26yrs still have an average HECS or HELP student debt of $12,000– $15,000 to begin paying off once their income reaches a minimum of $47,000- $48,000 per annum.
For those with an above average sized loan debt, the lure of higher wage, blue collar profession jobs is a tempting one as a means of turning around the debt faster. After the pressures and anxieties of completing a 3-year, 4-year or in some cases 5-year period of intensive study, the peace of mind afforded by efficient banking solutions will be an invaluable resource.
Paying Off Student Loan Debts
The six point guide to staying ahead starts with 1) Know your Loans – be familiar with the lender, keep day to day track of the balance and make all repayments on time. 2) Stay in touch with your Lender – when you change address or phone number be sure to update and build a solid relationship with the bank that is meeting your banking needs. 3) Pick the most practical repayment plan – don’t back yourself in a corner with expensive payments you won’t be able to make, read the small print and engage the best available advice from your banking institution. 4) Be Accessible – don’t disappear off the grid for long periods, be available to your creditors and maintain a regular two-way communication. 5) Pay off high interest loans first – chip away at your largest debt before you move on to lower interest rate debt 6) Prepay at every opportunity – pay down your loan as rapidly as possible.
Inevitably some well-intentioned graduates will carry student debt well into their 30’s and or may accrue a bad credit file from an unpaid car loan or outstanding personal loan etc, what is most important in this event is not to panic and assess all of your options carefully. Clean Credit, Australia’s leading credit repair services company, can help restore the credit score that you aim for while at the same time increasing your future financial opportunity. Clean Credit can assist with repairing & restoring to parity, Telcos, Utilities, Bank Records and Court Judgements etc. Credit removal fees are only charged in the event of removing a negative listing or a bad credit score from your file releasing you from ‘Credit Prison’.
As of January 2016 the reports are that student debt in Australia has reached $26 billion although Andrew Norton of the Grattan institute says this is not as shocking as it sounds in fact on the contrary it should be seen as a symptom of success for the Australian system in that participation in higher education is up by 50%, the HECS program now providing increased access to later education. More people studying means more people learning. The financial support service of the University of Sydney offers support to those students who are undergoing financial difficulty whose academic level may be compromised as such. University students looking to apply for HECS or pay tuition fees up front must go through the regular channels. OS-HELP is an alternative loan available to those eligible Australian students enrolled in a Commonwealth supported place to undertake part studies overseas.