Important Note: The Federal Government has legislated this change and ended the HELP repayment scheme.
For a full overview on all things HELP related, we’d suggest viewing our article on how to repay your help debt.
Back in August 2013 the Federal Government announced they would end the discount for early HELP debt repayments.
The Senate did not pass this legislation.
This means you can still take advantage of the HELP repayment scheme to pay your debt off faster!
But get in quick…
What can I do?
- If you’re studying, consider paying your study fees up front (if you can). This will attract a 10% discount and save you big money!
- If you’ve got a HELP debt, why not use some of your savings (or this year’s tax refund) to pay off some of your HELP debt. Whenever you pay more than $500 off in one go, you’ll receive a 5% bonus on the amount you pay. For example, if you pay $2000 off your debt, the government will chip in an extra $100 and your debt will be reduced by $2100!
When should I make the Payment?
If you’re looking to pay your fees up front, then your educational institution will set cut off dates. Dates vary, so check with your place of study.
If you plan to pay off a portion of your debt early, we suggest doing it no later than mid-May. This is because the ATO applies ‘inflation charges’ to your debt on 01 June.
By paying off some of your debt before the inflation is charged, you’ll lower your overall debt and lower the next inflation charges – saving you money!
What do you think?
Are you happy that the HELP Repayment Scheme will stay in place?