Csp, hecs help (1 Viewer)

[michelle.leung2]

for the HECS help thingyy when filling out the government form online, did everyone do full deferral? or most ppl?

also for the full deferral, am i allowed to pay $500 upfront for sem 1 and not pay any for sem2?? like in that pattern if you get wat i mean...

 

[AsyLum]

If you read the fine print this is what it says:

Note: This is only an indication of your payment option. Your actual payment option is determined at the end of the census date for each unit of study on
the basis of any up-front payments you have made.

 

[xeuyrawp]

for the HECS help thingyy when filling out the government form online, did everyone do full deferral? or most ppl?

As said above, the online form is only an indication.

also for the full deferral, am i allowed to pay $500 upfront for sem 1 and not pay any for sem2?? like in that pattern if you get wat i mean...

Yes you can. You're effectively paying of a loan that has no contract other than x payment when you earn y money.

I've really (once again) got to implore people not to pay upfront. I've got in arguments with people about it in the past, but you've got to ask yourself if it's really worth paying off.

It seems that you may be under the same impression that many are (I'm not sure why): That paying $500 will get a 20% discount of all your fees. This is incorrect:

For every $500 or more that you pay, you get a 20% discount. You do not get a discount to your total fees unless you pay your total fees minus 20%.


Do not pay upfront until you realise:

1. You've got to pay in blocks of $500 or more if you want to have a discount on those blocks.
2. until you've seen proof to the contrary (preferably from banks) the HECS debt does not affect things like bank loans as other debts would. They understand that you pay it off a) without interest, b) scaled to your income, and c) very minimally,
3. how much you will be paying back later - check out how it scales with income. Consider the compulsory payments that you'll be making in maybe 5 year's time - eg 4% of your salary per year, and decide whether you would prefer to have the money now and in your studies or later when you're actually earning money full time,
4. there's really no point in paying for it upfront unless it's a lot, as the government will immediately tax you the percentage once you're earning over $41,500 until you pay it off (or drop below $41,500), regardless of how much you've paid off already,
5. it is an interest-free loan! Do not be of the 'discount shopper' mentality and think that paying it later is effectively missing out on the discount - this is a stupidity which various types of modern marketing exploits. You need to decide simply whether it's worth paying off now with the discount, or whether it's worth leaving it.

I, personally, am happy to take out an interest-free loan from the government and pay it back slowly - that is if I do indeed pay it back (which I'm planning not to).

 

[AsyLum]

I, personally, am happy to take out an interest-free loan from the government and pay it back slowly - that is if I do indeed pay it back (which I'm planning not to).

Haha was about to say, you're going to skip the country aren't you Rob

 

[Pwnage101]

But if someone had the money now, why wouldn't they pay their student contribution in full upfront - you only pay 80% of the fees, so if your fees were $30 000 over 4 or 5 years, and u paid upfront fully each semeester (because you had the money), wouldn't you be saving $6000 in the end?

Also, although it is interest-free,(i may be mistaken, but im sure i read it somewhere): isn't it indexed to inflation, which is ~3%p.a.?

 

[AsyLum]

But if someone had the money now, why wouldn't they pay their student contribution in full upfront - you only pay 80% of the fees, so if your fees were $30 000 over 4 or 5 years, and u paid upfront fully each semeester (because you had the money), wouldn't you be saving $6000 in the end?

Also, although it is interest-free,(i may be mistaken, but im sure i read it somewhere): isn't it indexed to inflation, which is ~3%p.a.?

Am I better off paying HECS upfront?

Good article, and basically I'd rather have the cash in hand, it is very difficult for most students to firstly have that money on hand, and secondly to be able to support themselves and pay upfront.

If you've got the money, then sure go for it, not all of us have the luxury

 

[Pwnage101]

yeh good article

 

[xeuyrawp]

Great article, thanks.

It's a few years old, so remember that the income level is actually much higher (over $40,000) now (as opposed to 36K in that article).

 

[michelle.leung2]

thank you massive timeee

you guys helped alot! really..

 

[AsyLum]

thank you massive timeee

you guys helped alot! really..

*points to little scale image on the left hand side*

You know you COULD rep us (that's right, I'm a repwhorebitches)