Paying Uni Fees Upfront (1 Viewer)

[burkeyyy]

Hi guys,

My sister is about the start uni, and she's keen on paying her fees upfront. Is there any benefit to paying now, while she's earning under the threshold? Or is it better to pay later? I remember hearing that it works out cheaper if you begin paying back the debt after you're earning over the threshold...

Any help is appreciated.
Thanks, Vanessa.

 

[jas0nt]

government discounts you 20% of your fees if you pay upfront in its entirety.

 

[bubbly89]

I guess the real issue is could she use the money better now?

A 20% discount looks pretty nice, and not having to pay it off in the future would probably be a great start on saving... but it might just be better to use that money better now.

So... I reckon unless she has a lot of money, or her parents are paying it might just be better to use that money on a holiday, or on a semester overseas, or on a car etc.

 

[uhawww]

Time value of money.

 

[Azamakumar]

Time value of money.

.


20% over 3/4/5 years is not hard to gain at all. Stick it in a savings account/invest it and pay off HECS when you graduate and enjoy profit.

 

[ippie]

government discounts you 20% of your fees if you pay upfront in its entirety.

Wrong. If you are CSP, and pay anything over $500, you will get a discount. You don't have to pay it all to get the discount. I was thinking about paying 500 lol but in the end, I wasn't stuffed.

 

[ippie]

Lol 2007 students.

oh piss off, i read the fucking 60 page booklet okay?

 

[Evilo]

Wrong. If you are CSP, and pay anything over $500, you will get a discount. You don't have to pay it all to get the discount. I was thinking about paying 500 lol but in the end, I wasn't stuffed.

wrong, jasont is still right, he just didn't mention it included any amount over $500

 

[jas0nt]

wrong, jasont is still right, he just didn't mention it included any amount over $500

let's chestbump each other brah

actually in all fairness so i did say "in its entirety" but chestbumping each other's still cool

 

[blackrifice]

What happens if i cant pay upfront now, but say during my second year, I am able to pay $6000 off my hecs debt. Do i still get the 20 % discount in which the government contirbutes $1200.

If we can get the discount on payments over $500 later on, what is the point of paying off your hecs debt now. If you've got the money and have a conservative mindset, stick it in one of those online savings accounts giving like 7.2% p.a, or if ur a brave lil bugger who doesnt mind risking the chance of losing the shirt off his back, invest in CFD's.

So basically my question is, is the discount given later on during the year, or even in the following years?

 

[jirwin]

from what i understand after reading the booklet sent out with enrolments.

$500 or more payments upfront get a discount. 20% i think if u pay before the census date.

or u can make voluntary payments to the tax department of $500 or more and receive a 10% discount.

yes u can defer ur payment this year but then decide to pay some of it next year or semester or whatever. basically you can pay whenever you like. just certain times give u 20% discount, others give u 10%.

correct me if im wrong.

 

[Wooz]

What happens if i cant pay upfront now, but say during my second year, I am able to pay $6000 off my hecs debt. Do i still get the 20 % discount in which the government contirbutes $1200.

If we can get the discount on payments over $500 later on, what is the point of paying off your hecs debt now. If you've got the money and have a conservative mindset, stick it in one of those online savings accounts giving like 7.2% p.a, or if ur a brave lil bugger who doesnt mind risking the chance of losing the shirt off his back, invest in CFD's.

So basically my question is, is the discount given later on during the year, or even in the following years?

The discount is given if you select the Full up front HECS payment or the $500 min contribution HECS payment from my understanding. Not sure about paying later, i think you might be able to change to the HECS contribution system later but you won't get the discount of the first year because you must pay the full cont. or partial cont. before the census date.

Yeah theirs really no point in paying of HECS now, bank the money now and you should have easily made over that 20% + inflation% over 4+ years.

from what i understand after reading the booklet sent out with enrolments.

$500 or more payments upfront get a discount. 20% i think if u pay before the census date.

or u can make voluntary payments to the tax department of $500 or more and receive a 10% discount.

yes u can defer ur payment this year but then decide to pay some of it next year or semester or whatever. basically you can pay whenever you like. just certain times give u 20% discount, others give u 10%.

correct me if im wrong.

To deter according to the booklet on pg. 47 "you will need to complete the form, Deferring your complusory HELP, HECS or Financial Supplement repayment...you are asked to provide a detailed statement of your household income and expenditure to histify your claim.

However in pg. 41 it says you can change your payment option before enrolment(on or before the census date for a unit).
Edit: Yeah, you will get a 10% discount on voluntary contribution paid to the ATO before June 1 each year.

 

[jackmurray1989]

HECS debt it adjusted at the end of every year for inflation. Paying upfront with the 20% discount is better if you can.

 

[bubbly89]

Can someone point me in the direction of a savings account that offers 20% interest either every year, or via compound, because the highest I can find is 7.5%, and that's only for the first year. Or even an investment that reliably offered 20% in returns.

Don't you have to pay tax if you are earning a large amount of interest?

 

[Azamakumar]

The only way you can get 20% interest a year is if you run up a credit card. And that will not be of any help to you at all.

 

[black_kat_meow]

Can someone point me in the direction of a savings account that offers 20% interest either every year, or via compound, because the highest I can find is 7.5%, and that's only for the first year. Or even an investment that reliably offered 20% in returns.

Ahahaha.

 

[Captain Gh3y]

Hey guys just letting you know if you give the OP financial advice and it phails he can sue you coz yr not financial advisers

 

[Zarathustra]

The thing is that you are not going to be paying back your government loan in one year. Assuming you pay it all back in five or six years, you only need to make 3-4% more than inflation, if you can get 7.5% you will be set because inflation won't go over 4% and if it did then the RBA would increase interest rates much higher. Unless you are making a lot of money straight out of uni you won't have to worry about paying back large amounts of your loan as you'll be paying back 4-5% of 40-50k which is 2k a year. Unless you make significantly above 50k you will be paying back HECS for a long time and you will barely notice it. The loan the government is giving you is the best loan you will ever receive in your life, I can't understand people not realising this...

Main point: The only people that will be disadvantaged by taking the loan will be those making so much money as to not care about the small loss they will be making.

 

[shanti96]

Just a random QQ

Say if you missed out on a scholarship this year because you didnt apply but you get in next year, can that scholarship pay for the year you missed out on plus the years ahead? since my course goes for 3 years and the duration of the scholarship is up to 4 years?

Also can you apply for 2 scholarships?

 

[Azamakumar]

Nope, discount only applys if you pay more than $500 before the census date of the current semester.