University students raced to fork out more money to pay off their student debts to try to beat a deadline for a rise in Higher Education Contribution Scheme (HECS) interest.
More than three million Australians have been slugged with a 7.1 percent rise in their HECS debts after indexation was applied on June 1.
Education Department secretary Tony Cook said many students had aimed to make voluntary repayments before the June 1 deadline to avoid paying more interest.
Cook said the race to beat the deadline meant many paid more money than they would have otherwise.
“We know that students have been paying more up front than perhaps they intended to because they did see the indexation rates,” Cook told a Senate estimates hearing on June 2….