Payment options & HECS-HELP Overview of payment options New Zealand citizens & holders of permanent visas Full up-front payment with 20% discount Partial up-front payment Deferred payment Changing your payment option Overview of payment options Student contributions are charged for each unit of study you enrol in on a Commonwealth supported basis. Most Commonwealth supported students can either: pay their student contribution amount up-front and receive a 20% HECS-HELP discount, or  defer payment, request a HECS-HELP loan and pay later through the tax system. The following table gives the payment options available to you. If you are a(n).. Then you… You will… Australian citizen  permanent humanitarian visa holder  pre-2005 HECS student who is a:  NZ citizen who is eligible for HECS-HELP  holder of a permanent visa who is eligible for HECS-HELP. may make a full up-front payment have to pay 80% of the student contribution amount on or before the census date  receive a 20% discount on your contribution, paid to your provider  have no HECS-HELP debt. may make partial up-front payment pay part of your student contribution up-front made on or before the census date  receive a 20% discount for up-front payments of $500  or more have a HECS-HELP debt for the remainder  start repayments of your debt when your income is above the minimum threshold. See also: Compulsory repayment amounts: when and how much? may defer payment have a HECS-HELP debt for the full amount  start repayments when your income is above the minimum threshold. See also: Compulsory repayment amounts: when and how much? New Zealand citizens holder of other permanent visa must pay 100% of your contribution up-front You are not eligible for a HECS-HELP loan or discount. Note: Until the end of 2008, New Zealand citizens and other holders of permanent visas who are pre-2005 HECS students will have eligibility for HECS- HELP determined under the old HECS eligibility rules. See also: Pre-2005 HECS students Top New Zealand citizens & holders of permanent visas If you are a New Zealand citizen (who does not also hold a permanent visa) and you are not also an Australian citizen, you may be eligible for HECS-HELP payment options. To be eligible, you must: be a pre-2005 HECS student have started your course of study before 1 January 1996 have been living in Australia for a continuous period of at least 2 years. However, if you are a New Zealand citizen or holder of a permanent visa (except permanent humanitarian), you must pay 100% of your student contribution amounts for all the units on or before the census date. You are not: eligible for any HECS-HELP assistance allowed to change your payment option unless you become an Australian citizen. See also: Pre-2005 HECS students Top Full up-front payment with a 20% discount This payment option is available to: Australian citizens  the holders of permanent humanitarian visas   holders of other permanent visas who are pre-2005 HECS students and are eligible for HECS-HELP New Zealand citizens who are pre-2005 HECS students and are eligible for HECS-HELP. To make a full up-front payment, you must pay 80% of the total of the student contribution amount on or before census date for all the units of study with that census date. The Australian Government will pay the remaining 20% and you will never be required to pay this amount. You will have no HECS-HELP debt. Example: Pablo is enrolled in 4 units of study, all with a census date of 31 March 2005, and is eligible for HECS-HELP assistance. The total student contribution amount for these 4 units is $3,000. Pablo makes a full up-front payment of his student contribution amount. He pays $2,400 (80% of $3,000) to his higher education provider before 31 March. He receives a 20% discount ($600) which the Government pays to Pablo’s higher education provider. Pablo does not have to repay the $600. The following table outlines the process for making a full up-front payment to get a 20% discount. Stage Who Description 1 Student pays 80% of his/her contribution amount on or before the census date  receives 20% HECS-HELP discount on the student contribution amount. 2 Government pays the student’s provider the 20% discount. 3 Student does not:  incur a HECS-HELP debt  have to repay the 20% HECS-HELP discount. If you make a full up-front payment, you do not need to provide your Tax File Number (TFN). However, you may provide your TFN as a safety net. This will enable you to obtain a HECS-HELP loan for your contribution if you are unable to make a full up-front payment on or before the census date. Top Partial up-front payment This payment option is available to: Australian citizens permanent humanitarian visa holders holders of other permanent visas who are pre-2005 HECS students and are eligible for HECS-HELP New Zealand citizens who are pre-2005 HECS students and are eligible for HECS-HELP See also: Pre-2005 HECS students You may pay less than 80% of the student contribution amount on or before the census date as a partial up-front payment. Payments of $500 or more will attract a 20% discount. Your provider will determine the remaining amount that you owe after the census date. This amount is your HECS-HELP loan for that census date. If you make a partial up-front payment, you must provide your Tax File Number (TFN) on your Request for Commonwealth support and HECS-HELP form on or before the census date. This will enable you to obtain a HECS-HELP loan for the remainder of your student contribution amount. The following table outlines the process for making a partial up-front student contribution payment. Stage Who Description 1 Student pays less than 80% of his/her student contribution amount  receives 20% HECS-HELP discount for payments of $500  or more provides Tax File Number (TFN) on the Request for Commonwealth support and HECS-HELP form on or before the census date 2 Provider determines the remaining amount that student owes after the census date 3 Government pays the student’s provider the 20% discount (if any)  provides a HECS-HELP loan for the remainder of student contribution amount  pays the loan amount directly to the student’s provider 4 Student begins repayments on the HECS-HELP loan when income exceeds minimum threshold Payment of $500 or more: If you make a partial up-front payment of $500 or more by the census date you will receive a 20% HECS-HELP discount. Example: Isabelle is enrolled in 4 units of study, all with a census date of 31 March 2005, and is eligible for HECS-HELP assistance. Her total student contribution amount for these 4 units is $3,000. Isabelle makes a partial up-front payment of $500 before the census date. Her payment, including the discount of 20% on her up-front payment is $500 x 1.25 = $625. Her HECS-HELP debt will now be $3,000 – $625 = $2,375. The Australian Government will pay this amount ($2,375), plus the amount of the discount ($625 - $500 = $125) to Isabelle’s higher education provider on her behalf. Isabelle will be required to make repayments on the remaining debt when her repayment income is above the minimum threshold for compulsory repayment. Payment of less than $500: If you make a partial up-front payment of less than $500, you will not receive any discount. Example: Justin’s total student contribution amount for 4 units is $3,000. Justin is eligible for HECS-HELP assistance. He makes a partial up-front payment of $400 before the census date. He does not receive any discount payment on his up-front payment. Justin’s debt will now be $2,600 ($3,000- $400). The Australian Government will pay this amount ($2,600) to Justin’s higher education provider on his behalf. He will be required to make repayments on the remaining debt when his repayment income is above the minimum threshold for compulsory repayment. Top Deferred payment This payment option is available to: Australian citizens  the holders of permanent humanitarian visas   holders of other permanent visas who are pre-2005 HECS students and are eligible for HECS-HELP New Zealand citizens who are pre-2005 HECS students and are eligible for HECS-HELP. See also: Pre-2005 HECS students You may choose to obtain a HECS-HELP loan for your full student contribution and defer payment until your income exceeds the minimum threshold. The Australian Government will provide the full amount of your contribution to your provider. This amount is your HECS-HELP loan for that census date. You must provide your Tax File Number (TFN) on your Request for Commonwealth support and HECS-HELP form on or before the census date. The following table outlines the process for deferred student contribution payments. Stage Who Description 1 Student defers payment of his/her contribution amount  provides Tax File Number (TFN) on the Request for Commonwealth support and HECS-HELP form on or before the census date. 2 Government provides a HECS-HELP loan for 100% of the student’s contribution amount pays the loan amount directly to the student’s provider. 3 Student begins repayments on the HECS-HELP loan when income exceeds minimum threshold. Top Changing your payment option You are allowed to change your HECS-HELP payment option on or before the census date. The Request for Commonwealth support and HECS-HELP form only notes your intended payment option. Your actual payment option is determined at the census date by any up-front payments you have made to your provider. Example: Amy previously chose to obtain a HECS-HELP loan for her entire student contribution amount on the Request for Commonwealth support and HECS-HELP form. She now decides to make a full up-front payment. She simply makes the payment to her provider before the census date. She does not need to fill out another form. You must check with your provider for any specific requirements for changing your HECS-HELP payment option. Return to the Top of the page