In a high inflation world, if you have the capacity and the desire to help a relative repay student debt early, it will likely help grow overall family wealth.
With continual low inflation in recent decades, student debt hasn’t been a big planning issue. However, since inflation surged in 2022, you should factor it into your family wealth planning today. Don’t wait for higher indexation to bite again in June 2024.
While few self-managed super members have HECS debt, most have children or grandchildren who do. They want to maximise family wealth across the generations and help their family get ahead in difficult times.
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Tim Mackay is an independent financial adviser at Quantum Financial.
