Any outstanding HECS-HELP, FEE-HELP, VET FEE-HELP, OS-HELP, SA-HELP, and VET Student Loans (before to 1 July 2019) debts are included in your HELP debt.
VET Student Loans debt was separated from HELP debt on July 1, 2019. Students enrolled in a VSL program after that date will owe a VSL debt.
Once you earn enough to meet the mandatory payback threshold, you repay your HELP debt through the tax system. Each year, the mandatory payback threshold varies.
At any moment, you can make a voluntary payment to the Australian Taxation Office (ATO).
Why do I have a HELP debt?
Any units of study you did not withdraw from before the census date will result in a HELP debt. You can read Withdrawing from Study if you have any queries regarding withdrawing.
Only if you have’special circumstances’ can you apply to have your HELP debt forgiven.
If you withdraw from study after the census date because you changed your mind, your HELP debt will not be cancelled.
If your VET provider engaged in “inappropriate behaviour,” go here for information on how to cancel your VET FEE-HELP debt.
What is the difference between HECS and help?
HECS-HELP is a loan for Commonwealth-funded students attending public universities (and some approved private higher education providers). Students who are supported by the Commonwealth study in Commonwealth-supported places, which are subsidized by the government so that students only have to pay a student contribution for their courses. Our undergraduate students are all enrolled at Commonwealth-supported institutions.
FEE-HELP is a loan for domestic fee-paying students who qualify. The government does not subsidize these places, and the recognized providers decide the tuition prices. Both state institutions and licensed FEE-HELP providers offer FEE-HELP.
Who is eligible for help debt?
- be a citizen of Australia and meet the residency criteria (you must study at least part of your course in Australia)
- be a holder of a New Zealand Special Category Visa (SCV) or a permanent humanitarian visa, and satisfy the residency conditions
- by the census date, send the Request for Commonwealth Support and HECS-HELP form to your provider.
What is the combined HELP loan limit?
The combined HELP loan limit is a limit on the amount of money you can borrow from the Australian government to pay for your tuition fees. On January 1, 2020, the HELP loan limit replaced the FEE-HELP loan limit.
Do my past HELP or VSL debts count?
Yes. FEE-HELP, VET FEE-HELP, and VET Student Loan debts will be carried over and applied to your HELP loan limit.
The HELP loan limit will not apply to HECS-HELP debts with a census date prior to January 1, 2020.
The HELP loan ceiling will cover HECS-HELP obligations having a census date of 1 January 2020 or after.
What is the HELP loan limit amount?
The ceiling for students pursuing initial registration in medicine, dentistry, or veterinary science, as well as qualified aviation courses, is $155,448.
What is a renewable HELP balance?
Your available borrowing capacity for HECS-HELP, FEE-HELP, VET FEE-HELP, and VET Student Loans is your renewable HELP balance. This is the amount of HELP you have accessible.
How is my available HELP balance calculated?
Your available HELP balance is the difference between your HECS-HELP, FEE-HELP, VET FEE-HELP, and VET Student Loans borrowing and your HELP loan limit for that year.
If you take out a loan, your available HELP balance will be reduced, and if you repay it, your available HELP balance will be increased.
When do HELP balance credits start?
Beginning with the 2019-20 fiscal year, your available HELP balance will be credited.
Following the submission of your tax return, the Australian Taxation Office (ATO) will send you a notice of assessment and notify the department of any HELP debt repayments. These payments will be applied to your HELP account, reducing the available balance by the amount repaid.
What repayments credit my HELP balance?
When the ATO informs the department about your voluntary repayments, they will be applied to your HELP balance.
Your HELP balance will not be credited until you have completed your annual tax return and it has been processed by the ATO.
Does salary sacrifice affect HECS?
Because it is a reportable superannuation contribution, salary sacrificing to superannuation does not decrease your HECS/HELP liability. As a result, you may need to pay additional tax to satisfy your HECS/HELP liability, as the payroll system will not automatically deduct it.
Can I pay my HECS early?
Making voluntary contributions will undoubtedly aid in the speedier repayment of the loan. Your HELP balance will be credited for any voluntary repayments. Although voluntary repayments for study and training support loans are not refundable, the ATO advises that making a voluntary repayment before filing your tax return is the best time to do so. If you make a voluntary repayment before indexation begins on June 1st, you may be able to save money.
Does your HECS debt ever get wiped?
The HECS-HELP scheme is designed to assist qualifying students with loans and incentives to help them pay for their education. HECS debt collected during this time is distinct from other types of debt in that repayments are determined by your income rather than the amount owed. The loan is eventually paid off when the person dies.
WHAT IS A FEE HELP loan?
FEE-HELP is a loan program that assists students who are enrolled in a fee-paying institution in paying their tuition expenses. Places on fee-paying postgraduate courses at universities, as well as undergraduate and postgraduate courses offered by private providers, are generally available.
Are Help fees tax deductible?
THE FEES-HELP LOAN PROGRAM You may be allowed to claim your tuition expenses as a tax deduction if there is a direct link between your work and your studies.
Is HECS help means tested?
According to reports, the government is considering compelling students to pay off their HECS DEBT right soon, even if they don’t have a lot of money. The government plans to make HECS DEBT REPAYMENTS MEANS TESTED, which means that if you now live in a high-income family but are a low-income earner yourself, you will be obliged to make HECS DEBT repayments in the near future, even if you do not earn more than $54,000 per year. What makes you think this is reasonable? You do not need an income to take out a HECS help loan to finish your education, but if this new idea is implemented, students with low or no income will be forced to make repayments, despite the fact that they took out the loan with the understanding that they would not be required to pay anything back until they earned over the threshold.
This was addressed on page 22 of its discussion paper titled “Driving Innovation, Fairness, and Excellence.”
“It has been suggested that a household income test be implemented to enhance repayments from this group.”
https://docs.education.gov.au/system/files/doc/other/- .pdf
Thousands of students will be thrown into significant financial debt if they are obliged to make repayments due to means testing. Making your repayments based on your financial situation is cruel and unjust to everyone. Just because you come from a high-income family doesn’t mean you’ll be able to pay back these loans right away, especially since higher education is becoming increasingly expensive, putting an increased financial strain on young people who are consciously working to improve their lives and future career prospects.
Please join this petition to stop Prime Minister Malcolm Turnbull and the Australian government from forcing young people to repay hecs loans through means testing.
Does help debt interest?
HELP debts are not subject to interest. Indexation is a method of revising your debt’s real worth to keep it in line with increases in the cost of living. HELP debts aren’t indexed until they’ve been outstanding for 11 months.
