Note: I'm an Aussie, and the Aussie HECS (now HELP) system is a little different. The government loans you the money; interest is charged at CPI (so usually hal

Note: I'm an Aussie, and the Aussie HECS (now HELP) system is a little different. The government loans you the money; interest is charged at CPI (so usually half that of commercial rates; my debt actually decreased at one point when Australia measured negative CPI growth!). To ensure their debt, it is compulsarily repaid as a percentage of taxable income - the higher your income, the higher the percentage goes (and yes, this does create situations where a payrise leads to a negative cash-in-hand outcome). My debt topped out just over $20K. I graudated at the end of 2002, started paying it off in 2003 (ie, my first salary was high enough for the threshold) and it was paid off in mid-2009. I could have paid it off sooner, but the system means there are usually better uses for my disposable cash (mortgage, even cash deposit!). Still, it's good that it's gone. Good luck with yours.