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30.1 - What is HECS-HELP?
HECS‑HELP provides eligible students with a loan to pay their student contribution amount for Commonwealth supported units of study.
30.2 - Who is eligible for HECS-HELP?
To be eligible for HECS‑HELP for a unit of study, the student must be:
- an Australian citizen [HESA subsection 90-5(1)] who will undertake at least one unit of study in Australia contributing to their course of study
- the holder of a permanent humanitarian visa or eligible former permanent humanitarian visa holder who will be resident in Australia for the duration of the unit [HESA subsection 90-5(1)]; or
- a New Zealand Special Category Visa holder who meets certain arrival and the long‑term residency requirements and who will be resident in Australia for the duration of the unit [HESA subsection 90-5(2A)]. Please see [Appendix F] for further information
Further, the student must:
- have completed, signed and given to an appropriate officer of the provider a Request for a Commonwealth supported place and a HECS-HELP loan form on or before the census date [part 9] [HESA paragraph 90-1(g)];
- meet the TFN requirements [part 34] or have paid 90 per cent of their student contribution amount upfront on or before the census date [part 30.5] [HESA paragraph 90-1(f)]
- have an available HELP balance greater than $0 [HESA paragraph 90-1(ba)]
- be enrolled in the unit as a Commonwealth supported student [HESA paragraph 90-1(c)]
- be enrolled in an accredited course of study [HESA paragraph 90-1(aa)]
- still be enrolled in that unit at the end of the census date [HESA sub-paragraph 90‑1(e)(ii)]; and
- the person has a student identifier immediately before the census date [HESA paragraph 36-10(1)(f)]
A student is not eligible for HECS-HELP for a CSP and therefore also cannot receive HECS-HELP assistance for a unit of study if the unit forms a part of a course of study that is, or will be, undertaken primarily at an overseas campus [HESA sections 36-15 and 90‑1(c)].
Students will need to:
- pay 90 per cent of their student contribution amount upfront to the provider, and receive the HECS-HELP discount; or
- meet the TFN requirements so their student contribution amount may be deferred through a HECS-HELP loan, if applicable
Australian citizenship
A student who is an Australian citizen will not satisfy the residency requirements if the provider reasonably expects the student will not undertake any of the units of study contributing to the course of study within Australia [HESA subsection 90-5(3)].
A person may automatically be an Australian citizen by birth or adoption, or after applying for Australian citizenship by descent or conferral. A person over 16 years of age applying for citizenship by conferral, will only obtain Australian citizenship after they have made the pledge of commitment and the Department of Home Affairs has issued them with evidence of Australian citizenship.
Permanent humanitarian visa and eligible former permanent humanitarian visa holders
In determining whether a permanent humanitarian visa holder or eligible former permanent humanitarian visa holder is considered resident in Australia for the duration of the unit, a provider must disregard any periods spent outside of Australia if those periods:
- cannot reasonably be regarded as indicating the visa holder’s intention to reside outside of Australia for the duration of the unit; or
- are required to complete the requirements of that unit [HESA subsection 90‑5(2)]
However, a holder of a permanent humanitarian visa or eligible former permanent humanitarian visa holder will not satisfy the citizenship or residency requirements if the provider reasonably expects the visa holder will not undertake in Australia any of the units of study contributing to the course of study [HESA subsection 90-5(3)].
For more information, see [Appendix C].
New Zealand citizenship
From 1 January 2016, certain New Zealand Special Category Visa (SCV) holders have been eligible for HELP loans.
For more information, see [Appendix F].
30.3 - Student contribution payment options
Students who are eligible for a HECS‑HELP loan may choose to:
- make a full upfront payment by paying 90 per cent of the student contribution amount for a unit of study and receive a 10 per cent discount for that payment [HESA section 96-3]; or
- pay part of their student contribution upfront for all (or some) of their units, receive a discount for any payments totalling $500 or more for units of study with the same census date, and obtain a loan for the remainder [HESA section 96-2]; or
- obtain a loan for the full amount of their student contribution [HESA section 96-1]
Although students indicate their intended payment option on their Request for a Commonwealth supported place and a HECS-HELP loan form [part 9.1], a provider can only determine a student’s eligibility for HECS-HELP (and therefore confirm that the student’s preferred payment option is open to the student) after the census date(s) for the unit(s) of study in which the student is enrolled. Any payments made by the student to the provider on or before the census date are taken into account when determining a student’s payment status.
30.4 - Full up-front payments for HECS‑HELP eligible students
Students who are eligible for HECS-HELP may still choose to make a full upfront payment of their student contribution amount for a unit of study to their provider [HESA subsection 96-3]. To do this, students are required to pay their provider, on or before the census date for the units, 90 per cent of their student contribution amount for the unit.
A provider may set an earlier date for payment for administrative purposes [part 30.5].
A provider must not accept upfront payments of more than 90 per cent of the student’s contribution amount for the units of study in which a student is enrolled [HESA section 36‑50]. If a student does pay more than 90 per cent, the provider must repay the excess to the student unless the student agrees to apply the excess to other units [HESA subsection 93-15(3)].
This means that if a student makes a full upfront payment of 90 per cent of the student’s contribution amounts for all their units, the Commonwealth will pay the provider the remaining 10 per cent of their student contribution as a benefit to that student. This will fully discharge the student’s liability [HESA sections 96-3].
If 90 per cent of a student contribution is made up of dollars and cents, the provider may collect the amount of cents from the student.
TFN requirements for full up-front payments
Students who choose to make a full up-front payment of their student contribution amount are not required to provide their TFN [part 34]. If they have made a full up-front payment to their provider on or before the census date, they will be eligible to remain enrolled as a Commonwealth supported student.
However, it is prudent for students to provide their TFN, particularly if they are not certain they will be able to make a full up-front payment on or before the census date. This is because a provider must cancel a student’s enrolment in a unit as a Commonwealth supported student if the student has not made the full up-front payment for that unit and has not provided their valid TFN on or before the census date [HESA subsections 36-40(2) and 90‑1(f)].
Partial up-front payments
A partial upfront payment is a payment of less than 90 per cent of the student’s contribution amount [HESA section 96-2] for all units of study with the same census date. Providers may accept multiple partial upfront payments from students, or payments of less than $500, for units of study with the same census date.
Partial upfront payments that total $500 or more, and which are made on or before the census date, will attract the HECS-HELP discount. Payments that total less than $500 do not attract the
HECS-HELP discount (unless the upfront payment is equal to 90 per cent of the student contribution amount). HESA section 96-2 deals with how the Commonwealth must pay HECS-HELP assistance where partial up-front payment are made.
Example
Student contribution amounts are not accurate and are used as examples only:
- Marnie undertakes four units as part of a Bachelor of Engineering, all with a census date of 31 March 2021, and is eligible for HECS-HELP. The total student contribution for these units is $3,000
- Marnie makes a partial upfront payment of $500 before the census date, which means the payment, including the discount, is $500/0.9 = $555.56. Marnie's HECS-HELP debt will therefore be $3,000 – $555.56 = $2,444.44
- The Commonwealth will pay the debt amount of $2,444.44, plus the amount of the discount, which is $555.56 – $500 = $55.56, to Marnie’s provider on her behalf
- Because of the upfront payment, Marnie will defer the student contribution amount that isn't paid, $2,444.44 through HECS-HELP. Marnie will be required to repay the debt through the tax system when Marnie earns above the minimum threshold for compulsory repayment
Students who intend to make only a partial upfront payment must meet the TFN requirements [part 34]. This will enable the student to access HECS-HELP for the unpaid part of their student contribution.
A provider determines the amount of the unpaid portion of the student contribution after the census date, which will be the amount of the student’s HECS-HELP for that census date. The unpaid portion of the student contribution is the student contribution amount, minus any upfront payments and the related discounts.
A provider may pro-rata the partial upfront payments across all units the student has enrolled in on that particular census date or allocate the upfront payments in a way that best suits the provider’s business processes. The only requirement is that a provider cannot accept more than 90 per cent of a student’s contribution for a unit. The allocation method chosen may impact on students who apply for a remission of a HECS-HELP debt for a unit in special circumstances. It may also impact on students’ eligibility for a discount.
Example
Example 1 (student contribution amounts are not accurate and are used as examples only)
- Laura is enrolled in four units of study, each costing $500. The census date for two units is 31 March, and the other two units is 10 April
| 31 March | 10 April |
|---|---|
| Unit 1 – $500 | Unit 3 – $500 |
| Unit 2 – $500 | Unit 4 – $500 |
- Laura makes an upfront payment of $1,000 on 20 February and doesn’t nominate which units or which census date the payment is to go towards. Two of the ways the provider may choose to apportion the payment are as follows:
- $500 for each census date – in this case Laura receives a discount for the full $1,000 given that Laura has effectively made a partial upfront payment of $500 or more for each census date.
- $900 for the first census date and $100 for the second census date. Laura would receive a discount for the $900 since she paid 90 per cent of her student contribution for those units, but will not receive a discount for the $100 given that this is a partial upfront payment of less than $500
Example 2 (student contribution amounts are not accurate and are used as examples only)
- Helga is enrolled in four units of study on the same census date, each costing $500. Helga chooses to make a $900 partial upfront payment on or before the census date, or on an earlier date set by her provider
| Cost | Payment A | Payment B |
|---|---|---|
| Unit 1 $500 | $450 | $225 |
| Unit 2 $500 | $450 | $225 |
| Unit 3 $500 | $0 | $225 |
| Unit 4 $500 | $0 | $225 |
- In this case, the way the payments are distributed in Payment A and Payment B does not affect Helga financially. Helga will receive the full benefit of the discount either way. However, it would be different if Helga fails to provide a TFN. In Payment A, Helga’s enrolment will only be cancelled in units three and four as she has paid 90 per cent of the student contribution for units one and two. In Payment B, Helga’s enrolment must be cancelled in all units as Helga has not paid 90 per cent of her student contribution upfront and has not supplied a TFN. Therefore, Helga is better off in Payment A
Example 3 (student contribution amounts are not accurate and are used as examples only)
- Robert is enrolled in two units of study on the same census date, each costing $493. Robert makes one upfront payment of $493 allocated to one unit of study.
- To receive a discount for both units of study the sum of Robert’s upfront payments (for units of study with the same census date) must equal 90 per cent of the sum of the student contribution amounts or total $500 or more).
- In this case, the sum of Robert’s upfront payment is greater than 90 per cent of the student contribution amount for one unit of study and is also less than $500.
- A provider must not accept more than 90 per cent of the student contribution amount for a unit of study.
- As Robert allocated the payment specifically to one unit of study, the provider would have to return the excess amount back to Robert. If Robert did not allocate the upfront payment to any unit of study, the provider is able to allocate the upfront payment in a way that best suits the provider’s business processes, but must not accept more than 90 per cent of the student contribution amount/s.
30.5 - Deadline for up-front payments
Students may only make up-front payments on or before the census date for the unit of study [HESA subsection 93-15(2)]. A provider may ask students to pay by an earlier date for administrative purposes but, in doing so, must ensure that students are treated fairly. Any payments that a provider does accept on or before the census date count as up-front payments.
30.6 - HECS-HELP loans
Students who wish to access a HECS‑HELP loan for all or part of their student contribution amount must meet the TFN requirements, on or before the census date, in order to be eligible [part 34].
The amount of the student’s HECS-HELP loan is equal to the unpaid portion of the student’s contribution amount for the units immediately after the census date. That is, the loan is equal to the student contribution amount, minus any upfront payments made on or before the census date and any related HECS-HELP discount amounts.
The Commonwealth will pay the provider the amount of HECS‑HELP assistance lent to the student [part 39.1] [HESA subsection 96-1(b), 96-2(3)(b) and 96-3(b)].
Exceeding an available HELP balance
There is a ‘combined limit’ on how much students can borrow in government study and training loans. The HELP loan limit includes all previous FEE‑HELP, VET FEE-HELP and VET Student Loans borrowed, as well as new HECS-HELP loans from 1 January 2020.
If a student is enrolled in a unit of study where the student contribution amount exceeds the student’s HELP balance, the student will only receive HECS-HELP equal to the available HELP balance [HESA section 93‑20]. Providers are responsible for collecting the remainder of the person’s student contribution amount for the unit.
Example
Rob has a HELP balance of $2,000. Rob enrols in four units with the same census date. The student contribution amount for each unit is $600. The total amount of HECS‑HELP to which Rob is eligible for the units is $2,000, even though the total amount of student contribution amount for the units is $2,400. Rob must pay the remaining $400 up-front.
Students enrolled with multiple providers
Students who have almost consumed their available HELP balance, and who are enrolled with multiple providers or are enrolled in units, some of which are provided by OUA, must notify each provider and OUA of how much HECS‑HELP they wish to receive for each unit. [HESA subsection 93-20(3)].
In cases where a student is enrolled in multiple units with the same census date, and do not have sufficient available HELP balance to cover all the units, and fails to notify their providers, the units for which they will receive HECS‑HELP will be determined according to the order in which data is reported to TCSI (e.g. date and time). Where a student does not have enough available HELP balance to cover a unit of study, TCSI will indicate that the loan has been adjusted or rejected and this information will be available to the provider via TCSI systems. Providers are responsible for recovering any outstanding student contribution amounts from students. The Commonwealth can only pay the provider HECS‑HELP up to the amount of the student’s available HELP balance.
Determining a student’s available HELP balance
A provider can undertake an entitlement search at myHELPbalance any time to obtain the student’s remaining HELP balance. The available HELP balance will be calculated when the provider has reported the student’s record to the department, and the census date has passed. Before the census date as passed, any student records with a loan attached will adjust a student’s pending HELP balance.
A student can borrow up to the amount of the student contribution amount being charged by their provider if this amount does not result in the student exceeding their available HELP balance.
The amount of HECS‑HELP loan provided for a unit of study is the difference between the student contribution amount for the unit and the sum of any up-front payments (and applicable discounts) the student has made on or before the census date [HESA Division 93]. This amount should be calculated immediately after the census date for the unit. A student’s available HELP balance will be reduced by this amount.
Providers report a student’s HECS‑HELP loan through the Tertiary Collection of Student Information (TCSI) [part 36.1] and the Commonwealth pays the HECS‑HELP amount to the provider [part 42.3] [HESA sections 96-1, 96-2 and 96-3].
30.7 - Repaying HECS-HELP debts
A person’s HECS-HELP debt is part of their accumulated HELP debt recorded by the ATO. People repay their accumulated HELP debt through the taxation system once their income is above the minimum repayment threshold for compulsory repayments [part 35.1]. They may also make voluntary repayments to the ATO.
30.8 - Payment of the HECS-HELP discount
The Commonwealth will, as a benefit to the student, pay a provider the amount of the ten per cent discount for HECS-HELP eligible students who make a full upfront payment of 90 per cent of their student contribution amount, or pay the provider one-ninth of any partial upfront payment of $500 or more [HESA section 96-3 and subsection 96-2(3)]. Students do not incur a HECS-HELP debt in relation this discount amount.