Aussie Finance Blog

Australian personal finance news, tips and advices.

  • Personal Finance
  • Frugal Living
  • Insurance
  • Life Hacks
  • Career
  • Contact
You are here: Home / Career / How HECS-HELP Works

How HECS-HELP Works

30/10/2015 by George

Successive Australian governments have encouraged schemes that provide the opportunity for higher education for all, regardless of individual financial limitations. These initiatives are highly acclaimed by educationalists around the world, especially those residing in countries where equal study opportunities are not prevalent. The HECS-HELP system has strong support in Australia, although detractors cite the huge burden on the taxpayer in maintaining the system. So, what is HECS-HELP, and how exactly does it work?

HECS-HELP functions in two distinct ways. Firstly, it’s a loan for paying student contributions, with loan repayments commencing once the student enters the workforce and is earning above the minimum threshold requirement. Secondly, a HECS-HELP payment incentive assists students who pay fees upfront by offering a 10% fees discount, ultimately resulting in lower tuition costs.

Embed from Getty Images

 

Who is eligible for HECS-HELP?

Almost all university courses in Australia are undertaken in a Commonwealth supported place that offers HECS-HELP. The scheme is also available in some education institutions that provide in-demand certifications, such as those in nursing and teaching. Eligibility requirements for HECS-HELP include:

  • Australian citizenship, humanitarian visa holder, or fulfilment of other residency requirements.
  • Study to be undertaken at a Commonwealth supported place.
  • Enrolment at a supported place by the census date for every unit of study requiring a HECS-HELP loan or discount.
  • Thorough understanding of HECS-HELP obligations, and submission of the request to your education provider by the census date.

 

Is HECS-HELP available for the full cost of study?

Yes. The HECS-HELP scheme is of particular value to students from disadvantaged backgrounds who would otherwise be unable to afford university tuition. The value of HECS-HELP has been borne out time and again as Australians from challenging backgrounds, including those from remote communities, have risen well beyond expectations to become leaders in their chosen fields.

The entire HECS-HELP amount can be borrowed upfront, with loan repayments commencing once the repayment minimum wage threshold has been reached.

 

Are there additional costs for HECS-HELP?

There is no interest charged on your HECS-HELP loan. However, The Australian Taxation Office applies an indexation adjustment on a yearly basis that will keep your debt in line with the current Consumer Price Index. Factors such as average Australian wages and inflation are taken into consideration.

The indexation takes place on 1 June each year, affecting any portion of your HECS-HELP loan that has not been paid during the preceding 11 months.

 

Can I pay some fees up-front and use HECS-HELP for the rest?

Every student’s financial situation is different. Some are able to pay everything upfront, utilising the HECS-HELP scheme for a 10% discount. Others require the full backing of HECS-HELP. Many students also prefer to pay some fees upfront and some at a later date, thereby incurring lower future loan repayments. The 10% discount eligibility is offered to any student who makes a partial upfront contribution of $500 or more toward their study unit of choice.

 

What residency requirements do I need for HECS-HELP?

HECS-HELP is designed to assist students studying in Australia who meet citizenship or residency requirements. Citizens from other countries, including permanent visa holders (except humanitarian visa holders) are not eligible for HECS-HELP.

HECS-HELP is available for students undertaking as little as one unit of study in a Commonwealth supported place, although students studying with an Australian tertiary institution via distance education while residing overseas don’t meet the residency requirements for HECS-HELP.

HECS-HELP has proven incredibly popular with students all around Australia. However, there are also other study initiatives available to suit individual circumstances. For more information about HECS-HELP, or associated Australian Government tertiary study arrangements, visit the Study Assist FAQ page.

Related Posts:
  • Why Should Financial Literacy be Taught?
  • What Personal Loans Are Easy to Get Approved For
  • Are There Loans For Weddings?
  • What Is a Line of Credit
  • What is an Open-End Loan
Tweet
PinIt

Filed Under: Career

About George

Author of a few blogs and a student for life, because there's always something new to learn.

Comments

  1. sarah g says

    06/11/2015 at 1:53 pm

    I have used HECS-HELP, it saved my life honestly, thank god we live in such a great country, but i still have to pay it back 🙁 xoxox sarah.

Follow Us

  • Facebook
  • Google+
  • RSS
  • Twitter

About

This blog was started because I realised that there aren't too many Australian personal finance blogs that write about personal investment tips, insurance, choosing the right credit cards and similar topics. Let me know if you'd like me to write about something new.

Tag Cloud

air conditioning book keeping business expenses business insurance career car finance car loan cash flow clothing credit cards credit report credit score education first home buyers health insurance home finance home insurance home loan house prices income protection income protection insurance infographic insurance insurance broker interest rate investent investment life insurance money saving tips mortgage new business personal expenses personal loan property real estate renovation loan second hand cars self managed super fund settlement small business smsf super superannuation super funds used cars

Making Smart Property Choices

What are Rewards Credit Cards?

Air Conditioning Angst

5 Ways to Save the Planet Through Ethical Investing

What is an Open-End Loan

Disclaimer

All content provided on aussiefinanceblog.com.au is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.

Copyright © 2019 · Beautiful Pro Theme on Genesis Framework · WordPress · Log in