deferring hecs or paying up front (1 Viewer)

[fantaztik2006]

is the 20% discount worth it..
the way i see it is that $1 now is worth more than $1 later.. so why not defer it!

 

[NonCompusMentis]

I just deferred 'cause I can't afford to pay it now

 

[Antler]

the way i see it is that $1 now is worth more than $1 later.. so why not defer it!

Because your debt rises at the inflation rate.

 

[Bunny04]

I have deffered mine, simply cause I can't afford it at the moment..
Note: if HECS changes in future, we stay with the original one we signed up for at the time. So, we're not affected.. Although, it would kinda suck if Uni fees went down.. We wouldn't have that opportunity.. But hey, if they go up- we're not effected!

 

[sikeveo]

im paying myself upfront, 20% discount sounds nice.

 

[kow_dude]

I paid upfront. 20% discount is an enourmous amount.

 

[withoutaface]

You can also easily make 20% over three years by investing it.

 

[Lainee]

You can also easily make 20% over three years by investing it.

Investing would affect people who get goverments benefits like youth allowance and study payments. I didn't pay up-front last year, but am going to do it this semester because I've saved a bit of money from odd jobs (tutoring/cash-paid jobs).

 

[withoutaface]

But the idea is if you're earning YA you shouldn't have enough money to be paying it upfront :S

 

[shannonm]

called a "job"

 

[Raginsheep]

But the idea is if you're earning YA you shouldn't have enough money to be paying it upfront :S

Invest through your parents.

 

[mishka]

I'm leaving it all for when I'm earning a reliable, full time income, but each to his own I guess

 

[lala2]

I'm deferring. My parents have spent more than enough money on me during all my schooling days.

 

[Lundy]

I chose to defer. Well I didn't really choose to as I can't afford to pay up front anyway.

 

[adamsaclown]

Because your debt rises at the inflation rate.

I thought HECS debt wasn't indexed with inflation or something. Which is the reason my friend said some financial magazine gave for deferment being the best option. This was all a while ago though.

okay looks like my friend was lost, but heres a good website which helps you decide between the options:
http://moneymanager.smh.com.au/planning/guides/articles/further05.html

 

[Numero Uno]

Yeh true , one dollar now is worth more then a dollar in a future
This is was the main reason i choose to defer then become a full fee paying student.
and so the government can wait for my money!

 

[Generator]

Yeh true , one dollar now is worth more then a dollar in a future
This is was the main reason i choose to defer then become a full fee paying student.
and so the government can wait for my money!

HECS-Help upfront, not full fee. There is a difference.

 

[Raginsheep]

Yeh true , one dollar now is worth more then a dollar in a future
This is was the main reason i choose to defer then become a full fee paying student.
and so the government can wait for my money!

Yes but your future pay will effectively rise at the same rate meaning that there is effective difference. Putting the money you have now in investments with interest rates above the inflation rate will mean that you will be better off deferring.

 

[Hurri]

Oh btw, i read this thing on the Weekend Australian...or was it the Courier mail. Anyhoo, it mentioned of people doing a uni course, deferring their HECS and then going to a different country to practice accounting/law/med etc. Since HECS repayments are made through tax but because you're no longer working in australia, they don't end up paying for their HECS, EVER.