You’ve likely heard of it, but what exactly is HECS-HELP? This is your guide to the Australian government loan that has helped millions of people fulfil their dreams at university.
A degree is an investment in your future, so it’s important to understand the fees and costs, as well as any support that may be available to you. You are probably wondering how you pay for your university degree? You may have heard of a HECS-HELP loan but aren’t sure exactly what it means.
At first glance, HECS-HELP can seem a bit complex and overwhelming. The truth is, it’s usually a pretty straightforward process. We have broken down all the info you need to know about the government loan here:
What is HECS-HELP?
Simply put, it is a loan from the government to help students who are enrolled in a ‘Commonwealth Supported Place (CSP)’ to defer their student fees. Essentially, if you are eligible, when you apply to university you will be given the option to access a HECS-HELP loan to pay for your studies. After enrolling in a course, you enrol in subjects (or units) - these are added to your HECS-HELP loan, so you won’t need to pay anything upfront.
Wait, what?
Yeah we get it, that was a lot of information. Here’s what you need to know:
Commonwealth Supported Place (CSP): Is a university or higher education place where the Australia government pays part of eligible student's fees.
HECS: Higher Education Contribution Scheme - Refers to the type of loan you take out as a uni students to pay your contribution of your uni fees.
HELP: Higher Education Loan Program – Refers to the overall program that provides loans to eligible students (across TAFE, University etc).
So, the commonly referred to HECS-HELP loan is available to eligible students who are enrolled in a CSP (a uni or TAFE) to defer their fees, so they don’t need to pay anything up front.
Am I eligible?
The eligibility criteria for HECS-HELP includes:
Being enrolled in a CSP (a university or TAFE as mentioned above)
Be an Australian citizen who will study part of their course in Australia or an eligible New Zealand Special Category Visa holder
Be enrolled correctly and submit your HECS-HELP form on or before the census date
Have a tax file number (TFN) or applied for one
You can find more about eligibility on the Study Assist website.
How do I apply for HECS-HELP?
You must first accept your offer from Murdoch University, and through the MyMurdoch portal you have the option to defer fees to HECS-HELP. Note that you’ll need your tax file number to complete this process. You’ll only have to apply once for the duration of your whole degree.
What if I am studying a postgraduate course?
Some postgraduate degrees may fall under HECS-HELP, but others will be covered by a similar scheme called FEE-HELP.
How much can I borrow?
The limit to how much HELP you can borrow is $113,028 – but there is a higher limit for some approved courses, like medicine.
HECS repayments: questions about the future
It all sounds great not having to worry about educational costs right now, but how do you actually settle the debt? The good news is you won’t get served with a huge one-off bill. Here’s what you need to know about repayments.
When do repayments start?
Currently, the minimum threshold for 2022-23 is an annual income of $48,361, and it starts at just a 1 per cent repayment rate of the loan so for instance that would be $200 on a $20,000 HECS-HELP loan. If you do not earn above the threshold, you will not have to make a repayment on your debt. The more you earn, the more you have to repay. Your employer will deduct the percentage amount from your pay, or if you’re self-employed you’ll organise this after filing your tax return. Learn more and see the full breakdown of payment rates.
Can I pay off my debt faster?
While there is no deadline to pay HECS-HELP back, you can make voluntary contributions to eliminate your debt faster. You may prefer this option for a few reasons, but a big one is inflation. While there is no interest charged on HELP loans, there is something called ‘indexation’ which is added to your debt on 1 June each year. Indexation is a method that adjusts the amount of an asset’s cost by the rate of inflation.
Study Assist explains that indexation is applied to a HELP loan to maintain its real value by regulating it in line with changes in the cost of living.
What if I move overseas?
If you work overseas, and your global income is above the threshold, you’ll still need to pay.
At Murdoch, we are always happy to explain these concepts and there are many support services available for students.
Is uni worth it?
Studying at university is an exciting chapter in your life. If you choose to study at uni, you will be undertaking an immersive and exciting experience to help shape you into the knowledgeable professional you can become. Not to mention all the amazing people you will meet and opportunities you will encounter. But don’t take our word for it, read more about university life.
