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Should I pay off my uni HECS/HELP debt?

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Matt: I'm 23-year-old engineering graduate from Hobart in my first position out of university. I earn $68,000pa plus super and have almost $10,000 in super. I have $35,000 savings and a $33,000 HECS/HELP debt.

What is your advice in regard to a young graduate's immediate future?

Do I take advantage of the government's voluntary repayment contribution on HECS and HELP debts before the end of the year and pay it off all at once, or should I be a little more relaxed and be looking at investing? If so, where?

HECS HELP

Paul: My view on HECS and HELP debt is that it is likely to be the cheapest loan you will ever have.

My general advice is to allow the extra tax taken out of your salary to pay that down over time and invest your money.

I believe you will earn more on your savings and investments than the benefit you get from paying off HECS and HELP debt.

Equally, money you build up in your own name is yours to use.

This may be for investment, buying a home or even starting your own business.

HECS and HELP debt is very low cost, so paying it off more quickly would not be my priority.

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Paul Clitheroe AM is the founder of Money and serves as the publication's editorial adviser. One of Australia's most trusted personal finance experts, Paul has spent decades helping Australians build wealth, manage debt and make smarter money decisions. He is widely known for host­ing the Money TV program and authoring best-selling personal finance books. Since launching Money in 1999, he has played a leading role in delivering practical, independent financial guidance to Australians. Paul is chair of InvestSMART Financial Services. He was the founding chair of Ecstra Foundation, a national not-for-profit focused on improving financial wellbeing, from 2018 to 2026, and led the Australian Government's Financial Literacy Board and Financial Literacy Australia from 2004 to 2019. In academia, Paul is chair in financial literacy at Macquarie University, where he is also a Professor in the School of Business and Economics. Ask Paul your money question. Due to volume, Paul cannot respond to questions posted in the comments section.