Full up-front payment with a 20% discount
This payment option is available to:
* Australian citizens
* the holders of permanent humanitarian visas
* holders of other permanent visas who are pre-2005 HECS students and are eligible for HECS-HELP
* New Zealand citizens who are pre-2005 HECS students and are eligible for HECS-HELP.
To make a full up-front payment, you must pay 80% of the total of the student contribution amount on or before census date for all the units of study with that census date. The Australian Government will pay the remaining 20% and you will never be required to pay this amount. You will have no HECS-HELP debt.
Example: Pablo is enrolled in 4 units of study, all with a census date of 31 March 2005, and is eligible for HECS-HELP assistance. The total student contribution amount for these 4 units is $3,000. Pablo makes a full up-front payment of his student contribution amount. He pays $2,400 (80% of $3,000) to his higher education provider before 31 March. He receives a 20% discount ($600) which the Government pays to Pablo’s higher education provider. Pablo does not have to repay the $600.
The following table outlines the process for making a full up-front payment to get a 20% discount.
Stage
Who
Description
1 Student
* pays 80% of his/her contribution amount on or before the census date
* receives 20% HECS-HELP discount on the student contribution amount.
2 Government pays the student’s provider the 20% discount.
3 Student does not:
* incur a HECS-HELP debt
* have to repay the 20% HECS-HELP discount.
If you make a full up-front payment, you do not need to provide your Tax File Number (TFN). However, you may provide your TFN as a safety net. This will enable you to obtain a HECS-HELP loan for your contribution if you are unable to make a full up-front payment on or before the census date.
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Partial up-front payment
This payment option is available to:
* Australian citizens
* permanent humanitarian visa holders
* holders of other permanent visas who are pre-2005 HECS students and are eligible for HECS-HELP
* New Zealand citizens who are pre-2005 HECS students and are eligible for HECS-HELP
See also: Pre-2005 HECS students
You may pay less than 80% of the student contribution amount on or before the census date as a partial up-front payment. Payments of $500 or more will attract a 20% discount. Your provider will determine the remaining amount that you owe after the census date. This amount is your HECS-HELP loan for that census date.
If you make a partial up-front payment, you must provide your Tax File Number (TFN) on your Request for Commonwealth support and HECS-HELP form on or before the census date. This will enable you to obtain a HECS-HELP loan for the remainder of your student contribution amount.
The following table outlines the process for making a partial up-front student contribution payment.
Stage
Who
Description
1 Student
* pays less than 80% of his/her student contribution amount
* receives 20% HECS-HELP discount for payments of $500 or more
* provides Tax File Number (TFN) on the Request for Commonwealth support and HECS-HELP form on or before the census date
2 Provider determines the remaining amount that student owes after the census date
3 Government
* pays the student’s provider the 20% discount (if any)
* provides a HECS-HELP loan for the remainder of student contribution amount
* pays the loan amount directly to the student’s provider
4 Student begins repayments on the HECS-HELP loan when income exceeds minimum threshold
Payment of $500 or more: If you make a partial up-front payment of $500 or more by the census date you will receive a 20% HECS-HELP discount.
Example: Isabelle is enrolled in 4 units of study, all with a census date of 31 March 2005, and is eligible for HECS-HELP assistance. Her total student contribution amount for these 4 units is $3,000. Isabelle makes a partial up-front payment of $500 before the census date. Her payment, including the discount of 20% on her up-front payment is $500 x 1.25 = $625.
Her HECS-HELP debt will now be $3,000 – $625 = $2,375.
The Australian Government will pay this amount ($2,375), plus the amount of the discount ($625 - $500 = $125) to Isabelle’s higher education provider on her behalf. Isabelle will be required to make repayments on the remaining debt when her repayment income is above the minimum threshold for compulsory repayment.
Payment of less than $500: If you make a partial up-front payment of less than $500, you will not receive any discount.
Example: Justin’s total student contribution amount for 4 units is $3,000. Justin is eligible for HECS-HELP assistance. He makes a partial up-front payment of $400 before the census date. He does not receive any discount payment on his up-front payment. Justin’s debt will now be $2,600 ($3,000- $400).
The Australian Government will pay this amount ($2,600) to Justin’s higher education provider on his behalf. He will be required to make repayments on the remaining debt when his repayment income is above the minimum threshold for compulsory repayment.
