A financial advisor who built a $200,000 investment portfolio without using a dollar from her salary has warned that student debt, if left unpaid, could prevent Australians from buying their dream home.
Canna Campbell, from Sydney, said while student loans are technically interest-free, they are indexed against inflation, meaning the debt can increase by thousands each year. She recounted a client with $80,000 in student debt, which at a three percent inflation rate would grow by $2,400 annually.
Campbell advised contacting the Australian Tax Office to determine the exact debt owed, then drafting a budget for higher repayments to clear it quickly. She also warned that outstanding student debt limits borrowing capacity, potentially costing the chance to buy a home.
She urged viewers to start repaying even while studying, as small amounts like $100 a month can make a difference. Compulsory repayments kick in once income exceeds a threshold, but Campbell said paying off the loan early frees up cash for other goals.
