Upfront payment and CSP

[kenhung123]

Hey guys,

I'm actually not very clear about upfront and CSP payments for courses. So at Monash, if we pay full fee and accepted CSP does it mean we pay CSP price-20% (discount)? http://www.monash.edu.au/enrolments/loans/commonwealth-supported-place.html
Also, how does CSP work in terms of length of loan, repayments per month (% of salary or something) etc?

[Russ]

You can't pay full fee and be a CSP student. If you're an Australian student (ie not an international) you're a CSP student.

If you want to pay upfront, it needs to be done before the census date (after uni starts, plenty of time) and you'll get a 20% discount on that. CSP is an indefinite loan from the government, it's interest free but is indexed every year to account for inflation. Once you start earning above a certain amount (45k?) you get taxed to pay back your loan.

[_avO]

Does it increase the years after? Or would it be like for example assuming CPI increases by 2% every year
Year 1 = $9000.00
Year 2 = $9200.00
Year 3 = $9384.00
Year 4 = $9571.68

are these fixed or do they still increase every year since the loan was taken out

[Russ]

Subject costs can increase between years, yes. Depends on the university.

[kenhung123]

Thanks Russ

[Gloamglozer]

To be eligible for the 20% discount, you need to make payments of $500 or above.

I think when Ken mentioned full fee he meant paying the whole costs upfront while on a CSP place...  or that's how I interpreted it.

In any case, that's fine and you won't be sitting on any debt when you graduate.

[kenhung123]

Haha yea, sorry for being confusing. I meant pay the full CSP amount upfront.
Thanks Gloam

[kenhung123]

Can I have some opinions as to whether I should pay the full CSP amount upfront (I assume this means I pay the CSP cost per year of study) and receive a 20% discount?
I am not sure if its better to get a 20% discount or receive a free loan (not really sure whats the terms and conditions are though)

[_avO]

If you have the money and are not intending to invest it elsewhere you should pay the full amount and receive 20% back it's basically free money. But like most people I'm gonna take out a loan because I have no money but really the loan is just for people who can't pay upfront and will pay once they get a salary paying job after getting their degree. Also the loan isn't free since your fee will marginally increase based on the CPI from year to year to overcome inflationary pressures

[kenhung123]

Oh ok, can I ask what is the terms and conditions to this loan? E.g. maybe 10% of your salary per year must contribute to the loan until all paid off within X years?

[_avO]

2009–10
HELP repayment income (HRI*)   Repayment rate      
Below $43,151                           Nil      
$43,151–$48,066                      4% of HRI      
$48,067–$52,980                      4.5% of HRI      
$52,981–$55,764                      5% of HRI      
$55,765–$59,943                      5.5% of HRI      
$59,944–$64,919                      6% of HRI      
$64,920–$68,336                      6.5% of HRI      
$68,337–$75,203                      7% of HRI      
$75,204–$80,136                      7.5% of HRI      
$80,137 and above                   8% of HRI   

 

[kenhung123]

Thanks!

[kenhung123]

Also is my decision for the entire course or only for 1 year? E.g. decide to pay upfront for 1st year then loan the 2nd?

[Russ]

It's on a semester basis

[Gloamglozer]

And I don't think you need to pay for all of them.  So if you only want to pay for one of your subjects, then that's cool.