Student Loans Explained

These are a Commonwealth government provided loan given to students studying at a tertiary level in order that they may pay for their studies.

These interest-free student loans, which in Australia are called HECS or Higher Education Contribution Scheme, are deferred payment personal debts which become payable only when an individual begins working and earns an income at $25 348 in a year in which case a compulsory repayment is taken from that person’s net income.

Incentives to pay fees up-front are provided to students with upto 25% discount offered. These are offer only to students who are: Australian citizens; holders of Australian permanent visas or are New Zealand citizens. The HECS full time contributions for 2004 were:

$3,768 for the arts, humanitites and social sciences; education, performing arts, nursing and legal studies.

$5.367 for mathematics, computing, health sciences, architecture and sciences; and

$6, 283 for law, medicine, medical science, dentistry and veterinary science.