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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