Paying HECS upfront

[cara.mel]

Enwiabe, you have to learn that as head honcho, you need to actually be serious sometimes instead of just bagging arts all the time.
(ie say you don't actually know below it)

[enwiabe]

But but it was such a golden opportunity!

[cara.mel]

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)

[Collin Li]

But but it was such a golden opportunity!

How come no one else seems to think it's golden?

[hellomotto]

http://www.goingtouni.gov.au/Main/FeesLoansAndScholarships/LoanRepayments/Interest-Indexation.htm


Could that be considered as the interest?

[randomnezz]

hellomotto -- yeah that was the "interest" i was refering to in my 1st post ...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

[Collin Li]

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%.

[randomnezz]

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

arh inflation, i should have done a subject in business ... anyhow thanks coblin for clearing that up =)

[excal]

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?

[randomnezz]

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

[excal]

I would contact your super fund.

[brendan]

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

[div123]

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?

[excal]

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).