9 December 2011

Planning on making a voluntary HELP repayment?

If you have a Higher Education Loan Program (HELP) debt and plan to make a voluntary repayment (i.e. a repayment made above the minimum compulsory repayment threshold), you can do so at any time and for any amount.

You may receive a bonus for repayments that:

• are $500 or more, or
• clear your debt.

However from 1 January 2012, the Government will lower the HELP voluntary repayment bonus from 10% to 5%, subject to the passage of legislation.

So, if you make a voluntary repayment of $500 or more on or before 31 December 2011, you will receive a bonus of 10%.  However a voluntary repayment of $500 or more received after 31 December 2011 will attract a bonus of only 5%

You will not receive a bonus on repayment amounts that exceed the balance of your account.

Also, as from 1 January 2012, the HECS HELP discount applied to up-front student contribution payments of $500 or more, will be reduced from 20% to 10%.

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The above is an extract from the publication "Your Knowledge" a newsletter service we have subscribed to as an additional resource
This Newsletter, of necessity, has dealt with matters of a technical nature in general terms only. Clients should contact us for detailed information on any of the items in the Newsletter. No responsibility for loss occasioned to any person acting or refraining from acting in reliance upon any material in this Newsletter can be accepted by any member or employee of the firm.

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