Important Note: The Federal Government has now legislated this change and ended the discounts for early HELP debt repayments.
For a full overview on all things HELP related, we’d suggest viewing our article on how to repay your help debt.
Planning to reduce your HELP debt early with extra payments?
And are you going to take advantage of the HELP discount available when you pay your student contribution up front?
Get in quick because the federal discount is ending.
In the 2013 budget delivered by Treasurer Wayne Swan, it was announced that these generous incentives for early HELP debt repayment will be abolished.
The entire early HELP debt repayment scheme will end
Essentially, the entire HELP Repayment discount scheme will be scrapped. This means:
- 10% discount available to students who elect to pay their university or study fees up front — no longer available.
- 5% bonus on voluntary repayments of $500 or more for existing HELP debts — no longer applies.
Our advice: Save some money while you still can…
The good news is these changes will not take effect until 1 January 2014. That means you still have just over six months to take advantage of the existing discounts on offer. Here are two ideas:
- Still studying? Why not considering paying your Semester 2, 2013 fees up front and save 10% on your fees.
- Or, if you’ve got a debt and your income is above the HELP repayment threshold, why not take some (or all) of your 2013 tax refund and use it to pay off some of your HELP debt. As long as the amount you pay is above $500, you’ll qualify for a 5% bonus on the amount you pay.