These three scenarios show how HECS debt hits your borrowing capacity

Instead of paying his student loan down faster, this 26-year-old chose to divert savings to build a house deposit. It paid off.

Bianca Hartge-Hazelman and Lucy Dean

Updated Nov 14, 2024 – 1.57pm, first published at Nov 13, 2024 – 5.00am

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As the cost of higher education continues to rise, many younger Australians face a tough financial decision: prioritise paying off a HECS debt or focus on other financial goals, such as home ownership?

This question is something that Liam Medina, a 26-year-old mechanical engineering graduate from RMIT, faced before deciding to buy a house and land package in Melbourne’s outskirts while carrying a $40,000 Higher Education Loan Program (HELP) debt.

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Bianca Hartge-HazelmanContributorBianca Hartge-Hazelman is the author of the Financy Women’s Index and founder of the Impacter app which helps businesses with diversity, equity and inclusion. Connect with Bianca on Twitter.

Lucy DeanWealth reporterLucy Dean writes about wealth management, personal finance, lifestyle and leisure, based in The Australian Financial Review's Sydney newsroom. Connect with Lucy on Twitter. Email Lucy at l.dean@afr.com

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