hecs help why do i have to be study part of the course in australia

by Mr. Levi Padberg 6 min read

To get a HECS-HELP loan, you must: be studying in a Commonwealth supported place be an Australian citizen and meet the residency requirements (you must study at least some of your course in Australia)

Full Answer

What is the HECS-HELP scheme and Am I eligible?

The HECS-HELP scheme provides you with access to a loan to help you pay your student contribution amount, with the added incentive of a discount for upfront payment of your tuition fees. Am I eligible? Be studying in a subsidised enrolment at university – known as a Commonwealth Supported Place.

What is HECS and how does it work?

What is HECS? The Higher Education Contribution Scheme (HECS) is an integral part of the Australian higher education system. When your child attends uni or an approved higher education provider, they’ll be given the option to access HECS-HELP to pay for their studies.

What does HECS-HELP cover?

HECS-HELP can cover all or part of a student's student contribution amount. Through HECS-HELP, the Australian Government pays the amount of the loan direct to ANU.

What is the higher education contribution scheme (HECS)?

The Higher Education Contribution Scheme (HECS) is an integral part of the Australian higher education system. When your child attends uni or an approved higher education provider, they’ll be given the option to access HECS-HELP to pay for their studies.

Can you get HECS for part time study?

The Australian Government will pay for part of your study via a Commonwealth supported place (CSP)! The remaining part is your student contribution and you could get a HECS-HELP LOAN if you can't pay it upfront. if you can't pay your tuition fees upfront (some CSPs may apply).

How does the HECS-HELP system work?

HECS-HELP has two components - it is both a loan and a student discount. For example, if you are an eligible student, the Australian Government (through the HECS-HELP scheme) will pay your course fees for you. The Australian government pays the amount of the loan directly to your education institution.

Who qualifies for HECS?

You may be eligible for HECS-HELP if you are either: an Australian citizen, who will undertake in Australia at least one course with your provider. an Australian permanent humanitarian visa holder, and will be resident in Australia for the duration of your courses.

How do I get a 10% HECS discount?

The HECS-HELP discount If you are eligible for HECS-HELP and you make a full upfront payment to your provider of 90% of your student contribution for your unit/s of study, or a partial upfront payment to your provider of $500 or more for your unit/s of study, you will receive a 10 per cent discount.

What is the difference between HECS-HELP and FEE HELP?

HECS-HELP is a loan for eligible Commonwealth supported students studying at public universities (and some approved private institutions of higher education), whereas FEE-HELP can be offered to eligible students who study courses where the tuition fees are set by the approved providers.

Is it worth paying HECS early?

Advantages to early repayment Making voluntary contributions will definitely help pay down the loan faster. Any voluntary repayments will be a credit to your HELP balance.

How many degrees can you put on HECS?

As a Commonwealth supported student there is no limit to the number of degrees that you can study and, if eligible, you can obtain HECS-HELP for your second or subsequent degrees.

Are all Australian citizens entitled to HECS?

No. To access a HECS-HELP loan you must be studying in a Commonwealth supported place, AND: be an Australian Citizen, or. be the holder of a Permanent Humanitarian visa, or be an eligible former Permanent Humanitarian Visa holder, or.

Is HECS-help means tested?

The government wants to make HECS DEBT REPAYMENTS MEANS TESTED - meaning that if you are currently residing in a high income earning family, but are a low income earner yourself, you will be forced to make repayments on your HECS DEBT in the near future, even if you personally are not earning over the threshold of ...

How does HECS Work 2021?

From 1 January 2021, if you are eligible for a HECS-HELP loan and make an up-front payment of $500 or more towards units of study with the same census date, or make an up-front payment equal to 90 per cent of your student contribution amount(s), you will receive a 10 per cent discount, called the HECS-HELP up-front ...

Does HECS debt expire?

As mentioned and under the current law, if a person doesn't pay off their HECS/HELP debt before they pass away, that debt is wiped. As of 2019, the Government has written off the student debts of 9,000 people, and a further 18,000 people with student debt are expected to die over the next 10 years.

Can I pay my HECS debt off?

You begin to pay back your HELP debt through the tax system once you earn above the compulsory repayment threshold. The compulsory repayment threshold is different each year. The compulsory repayment threshold for the 2021-22 income year is $47,014.

What is HECS?

The Higher Education Contribution Scheme (HECS) is an integral part of the Australian higher education system.

Who is HECS for?

As we now know, HECS is an option for students in a CSP place. But there are certain criteria that your child will need to meet to be eligible for HECS-HELP.

What is a Commonwealth supported place?

A Commonwealth-supported place (CSP) is a university or higher education place where the Australian government pays part of your child’s course fees.

How much can your child borrow?

Now, we’ve established that the government subsidises CSP places at uni, but what does that mean for the remaining courses fees? Well, you can be confident that with HECS-HELP your child won’t have to pay any of their fees upfront.

How to repay a HECS-HELP loan

Your child will repay their HECS-HELP loan through the tax system once they start to earn above the compulsory repayment threshold.

Other financial support

There are plenty of options for your child to get additional help with costs. One of the best ways to boost your child’s finances and make the most of uni is to apply for a scholarship with Charles Sturt.

Have your questions answered

Want to learn more about HECS, help with costs or the application process? Get in touch for a chat.

What is HECS-HELP?

The HECS-HELP scheme provides you with access to a loan to help you pay your student contribution amount, with the added incentive of a discount for upfront payment of your tuition fees.

Am I eligible?

Be studying in a subsidised enrolment at university – known as a Commonwealth Supported Place.

When do I starting paying back my loan?

You’ll start repaying your HELP debt once your taxable income reaches the compulsory repayment threshold. This threshold is adjusted every year. The threshold for 2020-21 is $46,620.

Is there anything else I need to know?

HECS-HELP debts don’t incur interest, but are indexed each year in line with the Consumer Price Index (CPI). The indexation rate for 2019 is 1.8% (reviewed and updated annually on 1 June).

What is HECS-HELP?

The HECS-HELP scheme provides you with access to a loan to help you pay your student contribution amount, with the added incentive of a discount for upfront payment of your tuition fees.

Am I eligible?

Be studying in a subsidised enrolment at university – known as a Commonwealth Supported Place.

When do I starting paying back my loan?

You’ll start repaying your HELP debt once your taxable income reaches the compulsory repayment threshold. This threshold is adjusted every year.

Is there anything else I need to know?

HECS-HELP debts don’t incur interest, but are indexed each year in line with the Consumer Price Index (CPI).

How do I apply for HECS-HELP?

To apply for a HECS-HELP loan you must complete the Commonwealth Assistance Form (CAF) as part of your enrolment process in your chosen course.

What is the census date and why is it important?

The census date is when the University finalises your enrolment. Each unit of study has its own census date which means you are charged progressively for your course fees as you move through your studies, rather than one upfront payment.

Can I make voluntary payments?

Yes, you can make a voluntary repayment on your HECS-HELP loan to the Australian Taxation Office (ATO) at any time.

How much is the upfront discount for HECS?

To receive the HECS-HELP discount, you must be eligible for HECS-HELP assistance. The upfront discount applies to upfront payments of $500 or more made on or before the census date of the enrolled session. You will receive a discount of 10% on the upfront payment you make.

What happens if you withdraw your HECS?

This is known as a remission of debt and can only occur in special circumstances.

What is the Australian Help Loan Limit?

From 1 January 2020, the Australian Government introduced the combined HELP loan limit which is a cap on what you can borrow to cover the costs of your tuition fees for your Undergraduate and Postgraduate degrees.

How long does it take to correct an ECAN?

If you believe the eCAN is incorrect, you should submit a written request to Student Central within 14 days of the date of your eCAN asking for the eCAN to be corrected. You should identify the matters in the eCAN that you believe are not correct and specify why you believe they are incorrect.

When will the ATO credit my help balance?

Repayments starting from the 2019-20 income year will credit your available HELP balance.

When will the USI be required for CSP?

From 1 January 2021, new higher education students will need a Unique Student Identifier (USI) in order to be eligible for a Commonwealth Supported Place (CSP) or Commonwealth financial assistance HECS-HELP, FEE-HELP and OS-HELP.

Can you get a remission of HECS help?

This is known as a remission of debt and can only occur in special circumstances. If you have successfully completed a course, you are not eligible to apply to have your HECS-HELP debt removed for that course. To apply for a remission of HECS-HELP debt in special circumstances, you must apply for a late withdrawal.

How to apply for HECS help?

To qualify for HECS-HELP, you must: 1 be studying in a Commonwealth supported place; 2 be an Australian citizen; or 3 be a New Zealand Special Category Visa holder who meets the long-term residency requirements; or 4 be a permanent humanitarian visa holder; 5 be enrolled in each unit at your university by the census date; 6 meet the relevant HECS-HELP residency requirements; and 7 submit a valid Request for Commonwealth support and HECS-HELP form by the census date (or earlier administrative date) to your university.

How to indicate HECS help debt?

When commencing a new job make sure you indicate to your employer that you have a HECS-HELP debt. This is done by ticking a box on the TAX DECLARATION FORM you will complete before starting work.

Why is it important to keep receipts?

Keeping receipts and claiming deductions for everything you're entitled to can reduce your HRI and minimise your compulsory annual repayment amount. It is important to keep all work related receipts and to take advice on what you can claim in order to maximise your refund. Read our ultimate guide to tax deductions.

How much is the loan repayment threshold in Australia?

Loan repayments are then made through the Australian taxation system when your income reaches a certain threshold (currently $45,881 for the 2019-20 financial year). It is possible to make voluntary repayments at any time regardless of income. A HECS-HELP debt is incurred immediately following the elected 'census' date for any University course you ...

How much is the minimum amount of HRI for 2019-20?

The HRI thresholds are adjusted each year. The minimum HRI threshold to make a loan repayment for 2019-20 is $45,881. Where income exceeds this threshold, a compulsory repayment of at least 1% of your income is raised in your income tax assessment.