Is it cheaper to pay HECS upfront?
From 1 January 2021, if you are eligible for a HECS-HELP loan and make an up-front payment of $500 or more towards units of study with the same census date, or make an up-front payment equal to 90 per cent of your student contribution amount(s), you will receive a 10 per cent discount, called the HECS-HELP up-front …
How do I pay upfront HECS?
Select the myEnrol tab. Under the Enrolment Details heading, select the Commonwealth Assistance Form link. Complete the Commonwealth Assistance Form as required. You will be asked to select your preferred payment option (either an upfront payment or deferred to your HECS-HELP loan) within this form.
Should I pay uni fees upfront?
More of the debt is likely to be repaid that way than if the money was put towards upfront payments. There is one exception to the general rule that early repayment is usually not a good idea. So there is an incentive for these students to pay all of the fees upfront and avoid the 25 per cent loan fee.
Is HECS paid before or after tax?
It’s a common misconception that you only start paying your Hecs debt once you graduate. In fact, you start paying it the moment your income goes over the threshold. If you’re just over the cut-off, you will have to pay 1% of your total income. And that’s pre-tax, not after.
How much do you have to pay up front for HECS?
Up-front payments must be made on or before the census date of your study, or your provider’s administrative date if your provider has one. Your up-front payment must be $500 or more to receive the discount or equal to 90 per cent of the student contribution amount.
What’s the interest rate on a HECS loan?
For 2015 the indexation was 2.1 per cent. The cheapest unsecured personal loans have an interest rate of 9 or 10 per cent. There is one last opportunity for students taking-on new HECS-HELP debt to receive a 10 per cent discount if they pay at least $500 upfront for units of study that have a census date on or before December 31, 2016.
Do you have to pay commercial interest on HECS?
It doesn’t make sense to pay commercial interest rates to repay an interest-free debt — more so because HECS is not tax-deductible. So you need to have the money on hand, which would be unlikely for many students. If you pay your compulsory student contribution upfront, whether in full or part, you get a discount of 20 percent.
When do I need to change my HECS HELP payment?
You can change your HECS-HELP payment option before the census date (or earlier administrative date) of your study.