If you have a HECS or HELP debt

The Commonwealth Government has created several schemes to assist students with the cost of their education. They include HECS (Higher Education Contribution Scheme) – replaced on 1 January 2005 by HELP (Higher Education Loans Programme).

On 1 June 2006, any accumulated HECS debt you have will automatically become an accumulated HELP debt. Any HECS-HELP, FEE-HELP and OS-HELP debts you incur from 1 January 2005 are HELP debts and will be added together with your HECS debt to become one accumulated HELP debt on 1 June 2006.

This is similar to arrangements for HECS, where debts for PELS (Postgraduate Education Loan Scheme), OLDPS (Open Learning Deferred Payment Scheme) and BOTPLS (Bridging for Overseas Trained Professionals Loan Scheme) are treated as a single combined HECS debt.

Repaying the debt

When you begin earning an income and it rises above the minimum repayment threshold the Australian Taxation Office (ATO) will work out your compulsory debt repayment for the year from your tax return. But you, or anyone paying on your behalf, can also make voluntary repayments. While you’re repaying your debt it reduces your income, so you need to keep this in mind when budgeting or considering taking on any extra debt.

Under the new legislation, course fees are set by universities and differ between universities. The amount of your future HELP debt will therefore depend on the choices you make.

More info

Repaying your HECS debt 2008-09 on the ATO’s web site.

Related links

• Australian WorkPlace is a Federal Government employment web portal with links to information on employment, workplace relations, government assistance, jobs, careers, training and wages. www.workplace.gov.au

• Centrelink is the Federal Government's community services agency which provides a range of employment services and benefits. www.centrelink.gov.au

• The Source is a Federal Government youth employment information portal. www.thesource.gov.au

• ENYA (Enterprise Network for Young Australians) promotes the active participation of young people in enterprise, and provides support and information. If you are a young social or business entrepreneur it may be able to assist you. www.enya.org.au