HECS - Upfront or defer (2 Viewers)

[David27]

This 3% CPI Vs a managed fund at 5 % is meaningless when you get a 25% discount when you pay upfront. I think the 25% wins-don't you?

 

[chunder]

deferring everything is the way to go. Its the cheapest loan you'll ever get (i.e. indexed to inflation)....why not make the most of it??
Who cares if you get a fat debt at the end of it...you're only made to pay it back once you are deemed to be able to do so. If you don't want to pay it back....go overseas and stay there... they can't do nothing.

 

[MoNNiE]

Originally posted by chunder
If you don't want to pay it back....go overseas and stay there... they can't do nothing.

and you wonder why the government is loosing out. therefore opening up more full fee paying spaces

 

[alman]

heres the website im talking about...

http://moneymanager.smh.com.au/planning/guides/articles/further05.html

which is best for you depends on your circumstances...just make the most of it

 

[Xayma]

Well I wont be touching this subject till next year, but if I get into ADFA neither (only got my OSB to go ) otherwise I will have to defer I will be living away from home and all my money would go to living.

 

[pigs_can_fly]

upfront...cos paying hecs back is a pain in the arse...and if i'm using uni's money, then its all cool

 

[SoCal]

Originally posted by InfiniteQ
I work for a bank & they have agreed to reimburse my uni fees/books if I pass everything but they can only do it if I pay upfront.

OK, I think you are meaning to say this then:

I am paying upfront because if I don't pay upfront, the bank I work for won't reimburse me. Otherwise I think I'd defer cos I couldn't afford it and I hear that deferring can be good because once you start working you won't really notice it going out of your pay and before you know it you've paid your debt.

.

 

[shannonm]

that means you'd need to be earning 5 per cent on your savings. It doesn't sound much but try looking for a savings account or term deposit offering anything like this in interest. They're few and far between. == what century was this written in?
i know plenty at least 4.9%+


i took out a loan and payed (upfront) using the money from the loan.
payed off the loan within 4 months and it still came out cheaper
im not eligible to defer hecs anyway so blahh

 

[acmilan]

Whether i pay up front or defer does not really bother me but im paying up front just for the discount

 

[Minai]

The perk of deferring is that if somehow in the future, after you graduate, you move overseas and work (for whatever reason), you wont have to pay your HECS ever, until you start earning taxable income in Australia

 

[Lundy]

I don't have the income to pay upfront. And I do not expect my parents to pay my fees for me. So, hecs is my only option.

 

[Generator]

I was told that I had to accept my dad's offer to pay for my HECS fees upfront or else. I can't complain (though I did at the time).

 

[Mambomeg]

mine is like $6500 a year, thats like 3/4 of my income, so i deferred mine. Its no big deal, i mean, i'll graduate with $40,000 debt but its not "debt" as such, because its not like they'll send debt collectors after me or send me bankrupt. And the payments are all made automatically, so i wont really feel like i'm losing income to pay it back.
I'd rather use my money to have fun now, later on i'll be bogged down with a mortgage and car loan etc. Besides, i want to go to Europe, so my savings are going towards that.

 

[InfiniteQ]

The perk of deferring is that if somehow in the future, after you graduate, you move overseas and work (for whatever reason), you wont have to pay your HECS ever, until you start earning taxable income in Australia

This is partly the reason why it keeps going up. It's not right & it's not fair.