There's concern for University of Newcastle students with a HECS debt, after the federal government today announced a major indexation rise.
Student debt has been hit with a 7% hike across the board, which will take effect from the 1st of June.
It's the highest rate seen in 32 years.
The change means total repayment amounts will stay the same, but the repayment time will lengthen.
As a result, average HECS debt will increase by about $1500 this year and next year.
National Union of Students member Grace Francco, said it means many people won't be able to reduce their balance.
"Anyone who is earning less than $62,000, which is between the minimum and median wage, will see their debt increase. So the minimum repayments that they make won't actually decrease their HECS debt."
