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House deposit or HECS debt: what’s best for the kids?

Soaring student loan debts can reduce first home buyer lending capacity by up to $140,000, according to analysis by RateCity.

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Sydney couple Sam Peppou-Chapman and Mina Askovic have a choice to make. They have dreams of buying a home, but are still in the process of paying off their $60,000 combined student debt.

Fortunately for the pair, they have been offered support from the Bank of Mum and Dad, but they are undecided whether to use the money to pay off their debt or accept help with a home deposit.

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Duncan Hughes is a Walkley award-winning personal finance reporter, based in our Melbourne newsroom. Connect with Duncan on Twitter. Email Duncan at duhughes@afr.com.au
Lucy Dean writes about wealth management, personal finance, lifestyle and leisure, based in The Australian Financial Review's Sydney newsroom. Connect with Lucy on Twitter. Email Lucy at l.dean@afr.com

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    Original URL: https://www.afr.com/wealth/personal-finance/house-deposit-or-hecs-debt-what-s-best-for-the-kids-20240405-p5fhs5