The New Hecs Scheme

Illawarra Mercury

Tuesday February 15, 2005

The Higher Education Contribution Scheme (HECS) and Postgraduate Education Loan Scheme (PELS) have had some changes this year.

They now will be known as HECS-HELP and FEE-HELP, respectively.

HECS and PELS students who started their course before January 1, 2005 will be eligible for the new schemes.

What were known as HECS places are now called Commonwealth supported places. These allow students to postpone the payment of their university studies until they are earning a pre-determined salary.

Universities will determine student contribution (or HECS) amounts for these places, within ranges set by the Australian Government.

Under FEE-HELP students can borrow up to $50,000 (indexed each year) over their lifetime.

To be eligible for HECS-HELP or FEE-HELP you must be an Australian citizen or hold a permanent humanitarian visa.

Any HECS-HELP or FEE-HELP debts you incur from January 1, 2005 will be added to your HECS debt to become one accumulated HELP debt from June 1, 2006.

The discount for up-front payments of $500 or more has been reduced from 25 per cent to 20 per cent.

The minimum repayment threshold for compulsory repayment of a HECS or HELP debt has been increased from $35,000 in 2004-05 to $36,184 in 2005-06.

The bonus for voluntary repayments of a HECS or HELP debt has decreased from 15 per cent to 10 per cent.

NOTE: If you are going to continue your course after 2005 as a Commonwealth-supported student, you must complete a Request for Commonwealth Support and HECS-HELP pre-2005 HECS form or a Request for FEE-HELP Assistance form before the census date for your first unit of study.

For more information visit www.goingtouni.gov.au or phone 1800 020 108.

© 2005 Illawarra Mercury

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