Paying Uni fees

[costargh]

I chose the HECS-HELP option for paying my Uni fees.

Can I still pay some/all of my first semester off and get a 20% discount? How do I do so? I'm confused. Do I have to change my payment plan to upfront? Cause I dont want to change it to that because I want to have my course covered by HECS-help later on in my course.

CONFUSED

[Toothpaste]

I chose the HECS-HELP option for paying my Uni fees.

Can I still pay some/all of my first semester off and get a 20% discount? How do I do so? I'm confused. Do I have to change my payment plan to upfront? Cause I dont want to change it to that because I want to have my course covered by HECS-help later on in my course.

For that bolded question, I assume no because of:


Did you read the 'note'?^


http://www.goingtouni.gov.au/NR/rdonlyres/D605333E-C121-490E-8810-6DD50B0C1AEC/0/ICSS2009bookletforGTU.pdf
page 36

[costargh]

I've already read the going to uni booklet thingo and I know I can pay some of my uni upfront but I don't understand what option to choose for my payment option and whether or not by choosing partial payment I can actually pay my first semsster in full and then just let the rest accumulate as debt.

[costargh]

Oh thanks toothpick. I didn't notice that when I filled it out (or didn't remember).

What I'm worried about though is that if I choose to pay my whole semester in full, does that mean they will automatically assume I don't want a HECS loan for future years/semsters?

[champorado]

Your institution will have a census date. After this date they'll check if you've paid anything. If you've paid more than $500, you'll get the discount, if you haven't, you won't. You don't have to change anything, they'll check it for you.

You can make payments through money transfers, mail and through Australia Post.

The link below is much more helpful (p 50 for payment options and p 34 for a sexy flow chart)
http://www.goingtouni.gov.au/NR/rdonlyres/35A9BDC0-C476-4FC2-9BF6-1A55C510E07B/0/07_068_HECSHELPiNTERNET_004.pdf

fake edit: beatered, but did you actually read it? It doesn't matter what option you choose. The option you choose is only your intention. The Tax Office is ultimately gonna check and then decide how much you have to pay off. Each semester has its own census date. They won't assume anything.

[costargh]

Ohh ok cool cool

So like if I pay my first semester up front but then choose to not pay anything for semester 2 they will automatically just add it to my debt as long as I have submitted my application for HECS help? (which I have)

[champorado]

You'll be fine.

Why don't you make two payments >$500 for each semester instead? That way you get two 20% discounts.

[costargh]

It depends on whether I have the money at the time and whether I have put my money into other investments.

I don't understand your payment proposal. If I say wanted to pay $4000 for the first semester I'd actually only be out of pocket $3200 and the government would pay the other $800.

If I wanted to pay $2000 this semester I'd be out of pocket $1600 and the government would pay $400. (X 2 = $800 discount)

So it works out the same right?

Or do you mean that by paying it over two semesters I can have more cash now to spend/invest therefore making the extra payment I made this semester seem pointless as I could have used the money in better ways?

[champorado]

My mind operates in much simpler terms. All it sees is '2 discounts are better than 1'. Actually looking at how it works, the 20% discount for the $500+ payment isn't so much a discount as it is a bonus (you don't actually get 20% off your debt like you do paying it upfront, but you get it off your 'payment').

Using 4000 for each semester:
500+3375=3875x2=7750
3200+4000=7200

You'd have to pay them 1601 each semester for it to be ultimately cheaper than what you're going to do. So yeah, I'm an idiot. The other stuff should be right, though.

[brendan]

it rarely makes financial sense to pay off a HECS-HELP debt

[TrueLight]

lol yeah i was going to say.... wasn't there an article somewhere from brendan that said its better to just leave it and pay it later on...

[costargh]

My situation may be a case where its better.

If I pay off some of my debt as I go I get 4k a year from the parentals.

If I don't pay it off I get nothing.