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A comment on No Tuition, but You Pay a Percentage of Your Income if You Find a Job. Parent comment

Re:No Tuition, but You Pay a Percentage of Your Income if Yo... by mimhoff on Tuesday January 08, 2019 @06:51PM (#18860994)
> Is it stepped at all? Do you owe nothing before 50k and then once you cross that threshold you now owe money? That would seem to incentivise staying below that threshold for a percentage of borrowers.

Once you earn over the threshold your HELP repayments apply to your entire income. So, yes, at low incomes you get a pretty significant tax increase when you cross the threshold. I think they should make it marginal like regular income tax is...

https://www.studyassist.gov.au/paying-back-your-loan/loan-re...

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Re:No Tuition, but You Pay a Percentage of Your Income if Yo... by angry_octet on Wednesday January 09, 2019 @03:30AM (#18863225)
Technically you always owe the money, you just don't have to repay it when you have a low income. It is stepped in the rate of repayment -- it might be 2% of income at $50k and 8% at $100k. It certainly seems like your biggest raise ever when you pay it off.
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