ATAR Notes: Forum
Uni Stuff => General University Discussion and Queries => Topic started by: randomnezz on February 07, 2008, 10:21:07 pm
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Hi,
i am really considering paying the hecs upfront but i was wondering if i really should let my parents pay...
From what i gather paying upfront i will get
-- a 20% discount; so as my degree after 4 year will be about 28k ish so i would only pay 22k saving 6k or so; however i don't really like the idea my parent still paying for me, so i think that i'll will pay them back when i start working
-- will not need to pay the CPI (i think it like some interest thing ; about 3% onto of the unpay amount (p/a???) )
OR
is it better to pay it all a once after emplyment in my 1st year ...(i'm doing a allied health course so my min wage is about 40k) and i guess i will still be living my parents ...so much for wanting independence :2funny:
OR
say i defer the hecs, slowly pay it off ...(seems like a pain in the ass) however keeps my parents out of the equation...
i would like to hear some comments and if any1 else have something to add, it would very much appreciated ;D
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Also this is also assuming i don't fail, lol
and also i'm not sure if i am able to save money when i start working 0_0 hehe
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Last one is the best. The interest on that loan is very very low.
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If you don't like relying on your parents, you could do a deal with them. Like, in the first year they pay half your HECS upfront and you pay whatever you have, and then for every year they pay a little less in HECS and so you gradually become responsible. I think it's a good idea to pay some upfront if you can, how much is up to you and would depend on your finances.
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go for the last one
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If you have the money, then pay upfront.
Else, do the last one.
(as an aside, I've just realised that if you are getting a scholarship stipend - it's actually more value if you took $1000 and put it in super as a post-tax contribution. It's an immediate 150% return [govt. super co-contribution] + continual (high) interest on that - not to mention the nifty tax benefits when you do retire!)
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also i forgot to mention i get a 2k scholarship p/a :P but i guess i could just put it in as voluntary payment.. (if i keep it i think i would spend it all on shopping sprees...ekk) or i can get a laptop...
the superanuation thing also sounds good although i feel that a bit too young, (and jobless) to think about retire...hehe
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how would we go about doing that excal?
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I chose the partial upfront payment. Where you pay a bit of it now, and pay the rest later.
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thats if you do happen to get a job straight after graduating. unless your occupation has a shortage.
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From the government website, i think there is a shortage :P but yeah it doesn't mean i would get a job, and i think i gonna do partually upfront =) and slowly pay whatever left.....thanks for everybodys comments :coolsmiley:
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what's the government website to check occupation shortages?
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http://www.arts.unimelb.edu.au - it's not government, but it should provide enough information on unemployment opportunities. :)
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http://arts.unimelb.edu.au - it's not government, but it should provide enough information anyway. :)
The link is dead :(
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needed the www. :P
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Enwiabe, you have to learn that as head honcho, you need to actually be serious sometimes instead of just bagging arts all the time. :P
(ie say you don't actually know below it)
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:( But but it was such a golden opportunity!
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I know, but you have the problem that newbies will be looking up to your posts, and while you can have fun sure, you can't mislead them (people might miss the 'un-' etc)
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:( But but it was such a golden opportunity!
How come no one else seems to think it's golden?
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http://www.goingtouni.gov.au/Main/FeesLoansAndScholarships/LoanRepayments/Interest-Indexation.htm
Could that be considered as the interest?
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hellomotto -- yeah that was the "interest" i was refering to in my 1st post :P ...although technically it call the CPI ...lol at the government, trying to make it sound like it not interest =)
nak-- http://jobsearch.gov.au/JobOutlook/default.aspx?pageId=GoodProspects&WHCode=2 although keep in mind, i just notice, the data is slightly old :/ (made in 2006) and also play around with the search engines, you should find most occupations there and also give a analysist of each job :P
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CPI is inflation, not interest. It refers to the devaluation of your money, which is consequentially the increase of prices all around. However, investing your money in a bank would grow interest faster than CPI grows your loan, so that is why it is better to defer it.
There is a "25% loan fee" that is disguised as a "20% discount" from a higher price, but essentially if you don't pay upfront, you have to pay 25% more, but that is all - no annual interest rate, just an overall interest rate of 25%.
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I know, but you have the problem that newbies will be looking up to your posts, and while you can have fun sure, you can't mislead them (people might miss the 'un-' etc)
lol, i did miss the 'un' =) but an arts degree is pretty cool, i was really considering doing a double degree ba/bsw :P
arh inflation, i should have done a subject in business :( ... anyhow thanks coblin for clearing that up =)
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CPI is inflation, not interest. It refers to the devaluation of your money, which is consequentially the increase of prices all around. However, investing your money in a bank would grow interest faster than CPI grows your loan, so that is why it is better to defer it.
There is a "25% loan fee" that is disguised as a "20% discount" from a higher price, but essentially if you don't pay upfront, you have to pay 25% more, but that is all - no annual interest rate, just an overall interest rate of 25%.
Given a small scholarship, do you think taking advantage of the government's super co-contribution is a better idea than paying HECS off in the (very) long run?
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Given a small scholarship, do you think taking advantage of the government's super co-contribution is a better idea than paying HECS off in the (very) long run?
True, i guess i should consider it =) would you know how i would do that? that is who should i contact? thanks
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I would contact your super fund.
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my textbook has the answer:
http://home.exetel.com.au/brendan/HECS.jpg
see also ross gittin's column:
http://www.smh.com.au/articles/2004/03/12/1078594564502.html
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wen u pay off ure hecs is it before or after income?
if its before income (i.e works as a deduction) then u get a discount as to whatever rate of tax u pay?
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It's taken out as additional PAYG witholding (ie, you pay more tax as yo'ure on a different tax scale).
So my take on it would be that it is paid off pre-tax. That said, you don't get a discount to your rate of tax (you are on a different tax scale and are liable for more tax, not less).