US Trends

which repayment plan will you be placed on au...

You’ll generally be placed on a standard repayment-type plan by default , and then you can choose a different option if you qualify and it better suits you.

Below is a “Quick Scoop”-style breakdown tailored to your prompt “which repayment plan will you be placed on au…”—most likely about Australian student loan (HELP/HECS) or similar loan repayments.

What “Default” Repayment Plan You Get

For government student loans, you usually don’t pick a plan at the start the way you would with a private loan; instead:

  • Your loan is tied to your income rather than a fixed monthly bill.
  • You start repaying only after you pass a set income threshold.
  • The default is effectively an income‑contingent repayment schedule set in law (for Australia, this is the HELP repayment scale).

For Australia specifically:

  • You don’t “choose” a plan with your lender like “Standard vs Graduated” – the Australian Taxation Office and your employer handle repayments automatically once your income is high enough.
  • From the 2025‑26 income year, the minimum repayment income starts at about $56,156 , with increasing percentage rates as income goes up.

In the US context (if your question is about US federal loans):

  • New borrowers are generally placed on a standard 10‑year plan by default.
  • You can then apply to move to an income‑driven plan (like SAVE or others) if you qualify and want lower payments tied to income.

How It Works in Practice (Australia)

Imagine you have a HELP debt in Australia:

  • While your income is below the threshold , you pay nothing via compulsory repayments.
  • Once your repayment income reaches about $56,156 , a 1.0% repayment rate applies.
  • As your income rises, the compulsory repayment rate moves up through bands (2%, 2.5%, 3%, etc.) to 9.0% for incomes above roughly $146,594.

So the “plan” you are placed on is:

An automatic income‑based compulsory repayment system where your payment is a fixed percentage of your income above the threshold.

You don’t actively “enrol” in this – it’s the law‑mandated default.

Why Governments Are Tweaking These Plans (2025–2026)

Recently there has been reform talk and changes around student loan repayment systems to ease cost‑of‑living pressures:

  • The Australian government has announced reforms to the student loan repayment system from 1 July , including lifting the income at which you start repaying (for example, mentioning moves from the mid‑$50k range towards the high $60k range for some years).
  • The goal is to reduce compulsory repayments for lower and middle incomes and offer cost‑of‑living relief.

These kinds of reforms don’t change that you’ll be placed on an income‑contingent plan; they change how quickly and how much you repay.

Mini FAQ

Q: Can I choose a different “plan” in Australia like US borrowers do?
Not in the same way. The Australian system is a single, legislated income‑contingent schedule , not a menu of repayment products. You can, however, make voluntary additional repayments if you want to pay down faster.

Q: What if my income drops or I lose my job?
Because your repayments are linked to your income , if your income falls below the threshold , your compulsory repayments drop or stop until your income rises again.

Q: What about US loans – which plan by default?
US federal borrowers are usually placed on a standard 10‑year plan initially; you then apply if you want an income‑driven plan like SAVE.

Information gathered from public forums or data available on the internet and portrayed here.