Question about HECS (1 Viewer)

[Jerruy]

1. If i choose not to take out a HECs loan and decide on the 20% HECS-HELP discount for upfront payments of $500 or more, must I pay the entire cost of the upcoming semester before the Census date (e.g 30th of March)? So say the semester costs $4000, must I pay the whole amount by 30th of march?

2. If I take out a Hecs loan, am I able to pay upfront when I am able to do so and when funds are short allow the amount I owe accumulate on the HECS loan? e.g During the first semester I can afford the $4000 so I pay, but in the Second semester I do not have the $4000 required. I only have $1000. Can i pay the $1000 and defer the remaining $3000 to my HECS loan?

3. Say I take out a HECS loan for all the costs of my University study and after the first year, I come across $8000. During me second year of study, am I able to immediatly make an $8000 contribution to my HECS loan hence eliminated the $8000 which I had owing. I then accumulate HECS debt again during the second year and either pay again immediately or pay later when my income goes above the threshold.

4. Can i swap between my options? ie. I chose to the 20% HECS-HELP discount for upfront payment options, but after a year I am struggling to offord Uni fees, can I apply for HECS?



Thanks to anyone who can provide help.

 

[loser101]

http://www.goingtouni.gov.au/Main/Quickfind/PayingForYourStudiesHELPLoans/HECSHELP.htm

 

[Jerruy]

yeah ive been there a million times...it doesnt answer my q's

 

[Azamakumar]

Then uni probably isn't the place for you.

 

[Jerruy]

ok....can anyone clear it up

 

[Jerruy]

so if I apply for Hecs and receive it, but I make all repayments by the cencus date myself, I will accumulate no debt??? But just incase for there might be 1 payment I can not offord, HECs is there to fall back on??? AND i can repay that debt to the ATO whenever I want.

Is the above correct?

 

[blakegman]

so if I apply for Hecs and receive it, but I make all repayments by the cencus date myself, I will accumulate no debt??? But just incase for there might be 1 payment I can not offord, HECs is there to fall back on??? AND i can repay that debt to the ATO whenever I want.

Is the above correct?

just take out your hecs and pay the government back whenever u like. they accept lump sum payments, pretty sure there discounted or something too. As long as you apply for hecs ull always be able to fall back on that and it wont be an issue.


problem solved?
what course are u doing ? hopefully not anything to do with financial management

 

[Jerruy]

if thats the case, I dont understand why all people do not opt to have the HECs option as if you pay upfront you still receive the 20% discount but have HEcs to fall back on if you don't meet the payment.

Why would anyone choose the non-HECS option?

 

[Graney]

Why would anyone choose the non-HECS option?

Is this a joke?

UAI entry scores are up to five points lower if you take a dfee place. Surely you are aware of this system?

 

[Jerruy]

Is this a joke?

UAI entry scores are up to five points lower if you take a dfee place. Surely you are aware of this system?

no u dick...i mean of those CSP, why would anyone select the upfront payment option with no hecs when they can pay upfront with the 20% discount and have HECS to fall back on

 

[loser101]

Upfront CSP Hecs- Advantage - 20% discount, Disadvantage: you need the money NOW, and you may want to use the money on other investments.

Defeered CSP Hecs

- no 20% discount but if you pay $500 chucks you are paying off an extra 10% e.g pay $1000 you reduce your debt by $1100

- interest free. only go up inline with inflation.

===================================

Basically, IF YOU HAVE THE MONEY you pay your HECS upfront. coz you get the 20% discount. Unless you can invest that money and expect to earn a 20% Return on Investment.

If you dont have the money, then you defer your CSP HECS.

Once you start earning above $39k, its in your best interest to start paying it back by lump sum payment of $500, as this will earn a 10% discount. Again unless you can get a ROI of 10% or greater then paying it back in lump sums is the best way.

Actually you would need a real ROI of around 15%. i.e 10% + 5 % inflation rate.

The end.

 

[Jerruy]

but the partial upfront payment allows you to pay when you can upfront and defer those payments when you can't to hecs,,,,correct?

 

[loser101]

but the partial upfront payment allows you to pay when you can upfront and defer those payments when you can't to hecs,,,,correct?

cant understand your grammer

 

[loser101]

end of day, everyone should select

UPFRONT PAYMENT WITH SAFETY NET OPTION.

if you can pay 100% by the cencus date then you should do so.

if you can pay in $500 lumps sums then do so.

if you cant pay more than $500 at a time then dont pay anything

real simple

some people can afford to pay, some cant, for those who can afford to pay it works out cheaper, for those who cant afford to pay, then it will work out marginally more expensive coz you are essentially borrowing money from the government.

nothing in life is for free, but the HECS system is about the best thing in life where you can get something for free.