HECS: Should You Pay It Off Early?

Dr Sam Wylie discusses whether Australians should pay off their HECS debt right away.

#finance #investing #australian #HECS #Saving #finance #personalinvestment #studentdebt #superannuation #borrowing #taxes

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[karldc]

I paid my hecs off early. My undergrad I paid the last year of 10% voluntary payment discount, my masters the month before indexation applied when I knew I'd be paying off my balance anyway that financial year via mandatory repayments, and finally my wifes masters during covid when indexation was about to be 7-8% which was higher than our mortage % offset.

[SportsReplays]

Investing in an low cost ETF that receives an 10% annual return is a better option. Super has too many fees.

[AgathaTsing]

I paid off my mortgage recently, the most obvious benefit for me is the psychological effect - I have a total sense of freedom without a mortgage.

[zenoguru]

Outside of Super, shares/ efts etc get CGT clobbered.