Do I need to apply for HECS-HELP? (1 Viewer)

[vishnay]

so idk why but even though we have plenty of family friends who used hecs loans for their uni fees and paid it all off relatively quickly my parents are insistent on paying for my fees so that i don't accrue any debt

i've already applied for hecs-help and i'm quite financially illiterate so can anyone educate me on whether it really makes a difference if my parents pay for it all up front or its deducted automatically from my paycheck in the future

 

[idkkdi]

so idk why but even though we have plenty of family friends who used hecs loans for their uni fees and paid it all of relatively quickly my parents are insistent on paying for my fees so that i don't accrue any debt

i've already applied for hecs-help and i'm quite financially illiterate so can anyone educate me on whether it really makes a difference if my parents pay for it all up front or its deducted automatically from my paycheck in the future

afaik, negligible interests on hecs loan.

 

[idkkdi]

afaik, negligible interests on hecs loan.

apparently 0% interest. just indexation which seems to be "adjusting it in line with changes in the cost of living" at like between 1-2% which seems to be less than inflation?

 

[jimmysmith560]

HELP debt (which includes HECS-HELP) is repaid through the tax system once you earn above the compulsory repayment threshold, which will be different each year. For instance:

• The compulsory repayment threshold for the 2021-22 income year is $47,014.
• The compulsory repayment threshold for the 2020-21 income year was $46,620.

When you do your tax return, the ATO will calculate your income for the year and tell you how much your compulsory repayment is.

You can also choose to make a voluntary repayment to the ATO if and whenever you wish.

One apparent difference is that the amounts your parents will need to pay upfront will likely be significantly higher than the repayments that you would be making should you choose to use HECS-HELP.

Additional information regarding HELP loans can be accessed using the following link:

Loan repayments - Study Assist, Australian Government

Your Higher Education Loan Program (HELP) debt is repaid through the tax system.

www.studyassist.gov.au

I hope this helps!

 

[jazz519]

The HECs doesn't have any interest, it is only adjusted for the inflation. You are better off keeping that money and then paying it off later. That money that you would pay up front could be invested into stocks for example and over those years it would grow so you would actually be net better off with that vs just paying off the debt straight away.

 

[vishnay]

apparently 0% interest. just indexation which seems to be "adjusting it in line with changes in the cost of living" at like between 1-2% which seems to be less than inflation?

HELP debt (which includes HECS-HELP) is repaid through the tax system once you earn above the compulsory repayment threshold, which will be different each year. For instance:

• The compulsory repayment threshold for the 2021-22 income year is $47,014.
• The compulsory repayment threshold for the 2020-21 income year was $46,620.

When you do your tax return, the ATO will calculate your income for the year and tell you how much your compulsory repayment is.

You can also choose to make a voluntary repayment to the ATO if and whenever you wish.

One apparent difference is that the amounts your parents will need to pay upfront will likely be significantly higher than the repayments that you would be making should you choose to use HECS-HELP.

Additional information regarding HELP loans can be accessed using the following link:

Loan repayments - Study Assist, Australian Government

Your Higher Education Loan Program (HELP) debt is repaid through the tax system.

www.studyassist.gov.au

I hope this helps!

The HECs doesn't have any interest, it is only adjusted for the inflation. You are better off keeping that money and then paying it off later. That money that you would pay up front could be invested into stocks for example and over those years it would grow so you would actually be net better off with that vs just paying off the debt straight away.

thank you all

i have another question (not for me but a friend): would one be able to apply for a hecs-help loan if they were a permanent resident becoming a citizen next year?

 

[jazz519]

thank you all

i have another question (not for me but a friend): would one be able to apply for a hecs-help loan if they were a permanent resident becoming a citizen next year?

Not sure about that sorry. Probably better off to call the uni enrolment up and ask them about that

 

[jimmysmith560]

thank you all

i have another question (not for me but a friend): would one be able to apply for a hecs-help loan if they were a permanent resident becoming a citizen next year?

It depends on their visa. I was a permanent resident before becoming an Australian citizen in late 2021. I started university in 2020 and was still able to apply for a HECS-HELP loan.

As jazz said, it would be a good idea for your friend to contact the university to determine whether they are eligible to apply for a HECS-HELP loan.

 

[pikachu975]

so idk why but even though we have plenty of family friends who used hecs loans for their uni fees and paid it all off relatively quickly my parents are insistent on paying for my fees so that i don't accrue any debt

i've already applied for hecs-help and i'm quite financially illiterate so can anyone educate me on whether it really makes a difference if my parents pay for it all up front or its deducted automatically from my paycheck in the future

Definitely more worth to pay it over time as jazz said as that's like 40k you can invest and just pay it off over 5-10 years as you work. It just gets deducted from your paycheck each week automatically once you reach the required threshold.