In Australia, 90 per cent of eligible students take up a loan to pay for university study.
The federal government administers different loans schemes to assist students with their fees.
For university students, a three-year undergraduate degree costs about $32,000 or up to $60,000 for medicine.
So if you are starting University soon, here are some of the funding options available to you.
Andrew Norton, Higher Education Program Director at the Grattan Institute says students at universities or at an approved higher education provider are offered either a Commonwealth supported place (CSP) or a fee paying place. He explains, “So a Commonwealth supported place is a University place that is subsidised by the federal government, and those subsidies range from only about $2000 for a law or business degree to more than $20,000 for medicine. But that means that this course is cheaper than a full-fee course.”
The other option is the Higher Education Loan Programme (HELP) which consists of five loan schemes.
The main one is HECS-HELP. Under this loan, students who are Australian citizens can borrow money from the government for their higher education.
Andrew Norton says HECS-HELP is the most popular loan in Australia.
Students start paying back this loan only once they start earning over $54,000 a year. Government will then take atleast 4% of their income in repayment till all the debt is recovered.
There are four other loans available to assist students.
FEE-HELP - Applies to students who are on full-fee places which are mostly post-graduate courses, or courses in private higher education providers. With FEE-HELP there is a maximum debt about $100,000.
SA-HELP – This one is to pay for your student amenities’ fees, so each university charges about $300 for extra non-academic services.
OS-HELP – OS HELP is to pay for a semester overseas in a foreign university.
VET-FEE HELP – This loan applies to diploma level courses in vocational education.
Important information:
- There is no age restriction on any HELP loans and students can keep taking out HECS-HELP loans through their entire life if they want to.
- All Australian permanent residents and citizens can have a CSP but only citizens are allowed to take out a HELP loan.
- Currently students can pay part of their fees upfront and receive a 10 per cent discount. However, the discount will be abolished from 1 January 2017.
- Andrew Norton predicts some loan rules will change. For example, from 2017 students who move overseas will have to pay back their loans.
For more information about student loan schemes visit: http://studyassist.gov.au/sites/studyassist/helppayingmyfees
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