Having a university degree can help you get ahead in life. It will likely get you a better job and therefore a higher salary. Along with that higher salary can come higher cost as well. If you took out student loans to help you get through university then you will have to start paying them off after uni, whether you have a high paying job or not. You will likely have your wages garnished to pay back those student loans.

Student Loans with High Repayment Thresholds

Higher education loan repayment amounts owed by Australians average out to almost $17,000 and the amount you have to pay back each month is based on your salary. If you make above $54,126 a year then beginning July 1st you will have to make payments between 4 and 8 percent of your income a year. That is a lot.

Depending on your individual financial situation it might be wiser to make repayments faster. Unlike many other loans, there is no interest rate applied to this student loan but it does go up along with inflation every year. The current inflation rate to hit these loans is about 1.2 percent. If you have credit card balances with high interest rates then it is better to pay back those first.

Those who choose to pay back these student loans voluntarily will get some benefits. If you make a repayment of $500 or more a year then you will receive a 5 percent bonus to that total repayment. It could be wise to take a loan and pay back a big part of the loan to receive the added benefit of 5 percent added to the repayment amount. That loan could pay for itself if you take advantage of this voluntary repayment bonus.

There is another reason you might want to start repaying your student loan faster. The government will begin to chase down those who have outstanding student loan debts and require them to start settling those student loans soon. For anyone who lives outside of the country and has outstanding student loans, it might be time to think about getting the funds available to pay off your student loans now.

University was a time of fun and learning but now it is time to start paying back those loans and the faster you can get rid of that burden the better.