ATAR Notes: Forum

Uni Stuff => General University Discussion and Queries => Topic started by: andy456 on February 11, 2011, 01:02:21 pm

Title: Uni debt (HECS)
Post by: andy456 on February 11, 2011, 01:02:21 pm
Ok. After receiving my Monash course fees I have realised I can pay them off (Semester 1 at least). Or I could spend my money on a holiday at the end of the year or in the future. So I would like to know peoples opinions on what they would do if they had the opportunity to go through first year uni without getting any debt.
Title: Re: Uni debt (HECS)
Post by: Duck on February 11, 2011, 02:32:13 pm
Go ask your parents (or any financially independent person) whether they would accept an interest free loan.
Title: Re: Uni debt (HECS)
Post by: Gloamglozer on February 11, 2011, 05:19:29 pm
Go on the holiday.

Pay it off later when you earn more than ~45 k per annum.

It'll be worth it.  ;)
Title: Re: Uni debt (HECS)
Post by: jimmy999 on February 11, 2011, 05:46:17 pm
I chose to keep my scholarship money instead of paying my HECS off for a few reasons, I needed the money to help with transport to and from uni (most of my first scholarship payment goes towards car insurance and registration), and without having time to work, I need some money for food. Another reason is that I now have a lot more money than I did a year ago and soon enough will be able to spend it on luxury things such as a new laptop and potentially a holiday.

Don't pay your HECS debt off now. Keep the money and spend it on yourself. You want to enjoy uni as much as possible, and this includes going on random holidays and doing crazy things. Worrying about money and loans is something to worry about once we have jobs
Title: Re: Uni debt (HECS)
Post by: binders on February 11, 2011, 06:27:22 pm
don't forget though, if you do pay upfront, you get a 20% discount on your fees. so while there are good reasons to keep cash in hand now, you will probably have to pay it eventually, and you have the chance to save yourself 20%. worth thinking about.  If i had the opportunity to finish 1st year without debt, i would take it.
Title: Re: Uni debt (HECS)
Post by: Russ on February 11, 2011, 06:38:06 pm
The 20% off only matters if you can afford it, you shouldn't be stretching to make the payment just to get that benefit.

I'm fairly sure any voluntary contribution after you graduate attracts a lesser discount anyway
Title: Re: Uni debt (HECS)
Post by: jimmy999 on February 11, 2011, 06:48:24 pm
The 20% off only matters if you can afford it, you shouldn't be stretching to make the payment just to get that benefit.

I'm fairly sure any voluntary contribution after you graduate attracts a lesser discount anyway

I'm pretty sure that last year, if you paid $500 upfront, then the fees for that semester would be 20% less, thus when you pay it off later it will be cheaper. (I might have this mixed up, I didn't really pay attention to fee stuff)
Title: Re: Uni debt (HECS)
Post by: Gloamglozer on February 11, 2011, 07:03:52 pm
The 20% off only matters if you can afford it, you shouldn't be stretching to make the payment just to get that benefit.

I'm fairly sure any voluntary contribution after you graduate attracts a lesser discount anyway

Not any voluntary contribution but almost.  It's the same.  Over $500 voluntarily attracts 20% discount.
Title: Re: Uni debt (HECS)
Post by: andy456 on February 11, 2011, 08:57:22 pm
When we earn above the threshold does the payment come out of your weekly, monthly whatever pay like tax.... or is it like at the end of the financial year a bill is sent to you based on your earnings for an upfront payment??

I can't make up my mind.... my mum really wants me to pay off debt which is boring...
Title: Re: Uni debt (HECS)
Post by: jimmy999 on February 11, 2011, 09:31:19 pm
When we earn above the threshold does the payment come out of your weekly, monthly whatever pay like tax.... or is it like at the end of the financial year a bill is sent to you based on your earnings for an upfront payment??

I can't make up my mind.... my mum really wants me to pay off debt which is boring...

It automatically gets deducted out of your pay like tax. My sister who just earnt above the threshold had about $8 a week come out of her pay. Obviously it increases for the amount you earn.
Title: Re: Uni debt (HECS)
Post by: Leena on February 11, 2011, 09:59:21 pm
i would pay upfront
holidays can come later, i would rather be wait to take a holiday when i dont have to worry about being in debt later
Title: Re: Uni debt (HECS)
Post by: ninwa on February 11, 2011, 11:29:27 pm
After uni, you'll need to find a job, move out, pay rent/mortgage, pay bills and car regos and petrol and possibly raise a family if you're so inclined etc. etc. etc.

i.e. you have the rest of your life to be boring, now's the best time to travel and have fun. Remember, the debt is interest free... I wouldn't pay now if I were you.
Title: Re: Uni debt (HECS)
Post by: Russ on February 12, 2011, 10:23:06 am
I can't make up my mind.... my mum really wants me to pay off debt which is boring...

Ignore her, she can't tell you what to do about your education any more. If you want to pay and you have no plans for the money, well, there are worse things you can do but don't pay your fees just to have no debt. You're not paying interest so putting the money in a bank for the next 3 years is probably going to make you money
Title: Re: Uni debt (HECS)
Post by: Gloamglozer on February 12, 2011, 02:14:21 pm
It's interest free but it does rise according to inflation, right?

That's what I was lead to believe.
Title: Re: Uni debt (HECS)
Post by: Russ on February 12, 2011, 02:22:26 pm
Yes, but Australian inflation seems to average 2.5% which is well below the interest rate on my bank account
Title: Re: Uni debt (HECS)
Post by: Souljette_93 on February 12, 2011, 07:55:44 pm
So what did you end up doing?

for me: Pay off the fees! ( Actually, I already have :) )
Title: Re: Uni debt (HECS)
Post by: andy456 on February 12, 2011, 09:18:59 pm
I havent done anything yet.... I don't get the money till like april (scholarship) so I dunno....
I really want to travel..
Title: Re: Uni debt (HECS)
Post by: boysenberry on February 12, 2011, 09:25:17 pm
I havent done anything yet.... I don't get the money till like april (scholarship) so I dunno....
I really want to travel..

Where to?
Title: Re: Uni debt (HECS)
Post by: andy456 on February 12, 2011, 09:38:18 pm
Bali and Croatia
Title: Re: Uni debt (HECS)
Post by: boysenberry on February 12, 2011, 09:42:01 pm
Bali and Croatia

Sounds like wonderful places. Good choices.
Your Indonesian would definitely be handy in Bali I think.
Title: Re: Uni debt (HECS)
Post by: monokekie on February 12, 2011, 09:51:33 pm
um... generally speaking... money depreciate over time... and salaries of people increase.... and by the time you graduate the repayment rate might be more affordable to you?

Purhas you can use ur scholarship money or your money from work for a trip? lol...
Title: Re: Uni debt (HECS)
Post by: rustic_metal on February 13, 2011, 04:08:08 am
Debt or a holiday? What a question.
Title: Re: Uni debt (HECS)
Post by: slothpomba on February 13, 2011, 05:09:12 am
Nina's post pretty much hits the nail on the head.

Theres no compelling reason to pay it off now really, might as well live your life without worry now while you can.

Title: Re: Uni debt (HECS)
Post by: jimmy999 on February 13, 2011, 12:36:22 pm
You know you can change how your scholarship is used each year. This year, get it paid into your account and spend it on an enjoyable holiday. Then next year, because you've been on that holiday, you probably wouldn't want to go on another holiday thus for 2nd year, you can make the scholarship be paid straight towards your fees.

Either way, definitely take the money this year to invest in savings for a holiday, then in later years use it for the fees
Title: Re: Uni debt (HECS)
Post by: Eriny on February 13, 2011, 03:47:44 pm
If you wanted to maximise your money now, you would put it in a super fund and then you'd get a co-contribution from the government and high interest. But, then, you couldn't use that money until you retire. You would be profiting in the (very) long run, but it doesn't seem to be worth it to me because one day you'll have a good salary and you won't have to sacrifice one thing for another and the sum of money won't be such a big deal to you.

In other words, I think you have more need for the money now than your $45,000 per annum earing future-self needs (or even what your retired future-self needs). And hey, if you don't end up earning that much, you'd really regret paying off the HECS!
Title: Re: Uni debt (HECS)
Post by: tram on February 13, 2011, 08:27:19 pm
Ummmm, I'm in the same situation as I have scholarship money but I think the 20% discount is enough incentive for me for now. At least for first year I think i'll use the Money to pay off my fees, I mean I'm living at home so don't have to worry about all those kinda costs and I'm tutoring so I've got enough money to have fun when I want to relax or buy myself something. Just the way I see it, might as well take advantage of the discount if I can.