HECS-HELP (most often referred to simply as "HECS" is a loan scheme that allows eligible students to defer payment of their university tuition fees. Here’s a detailed explanation to help you understand how it works and what it means for you:

What is HECS-HELP?

HECS-HELP is like a superhero for your university fees. It’s a loan scheme provided by the Australian Government that covers your student contribution amounts (tuition fees). This means you can focus on your studies without worrying about paying upfront. Pretty cool, right?

Am I Eligible?

To get a HECS-HELP loan, you need to:

• Be an Australian citizen or hold an eligible permanent humanitarian visa, and study at least part of your course in Australia.

• Be enrolled in a Commonwealth Supported Place (CSP) at an approved higher education provider.

• Have a tax file number (TFN) or apply for one.

• Submit a completed "Request for Commonwealth support and HECS-HELP" form by the census date.

• Maintain sufficient Student Learning Entitlement (SLE) and meet the academic and genuine student criteria set by your provider

How Does HECS-HELP Work?

Tuition Fees Covered: HECS-HELP covers your student contribution amounts (tuition fees) but not additional costs such as accommodation, textbooks, or other living expenses.

Deferring Payment: When you enroll in a CSP, you can defer your tuition fees through the HECS-HELP scheme. This means you don't have to pay upfront.

Loan Repayment: You start repaying your HECS-HELP debt through the Australian taxation system once your income exceeds the minimum repayment threshold, which is adjusted annually. For 2024-25, the income threshold is $54,435. The repayment rate starts at 1% of your income and increases with higher income levels.

No Interest, But Indexation: There is no interest charged on HECS-HELP loans, but your debt is indexed annually to maintain its real value, adjusting for inflation. This happens on 1 June each year.

How to Apply?

Accept Your Offer: Secure your spot in your chosen course.

Fill Out the Form: Complete the "Request for Commonwealth support and HECS-HELP" form online via your university’s student portal.

Submit Your TFN: Make sure your tax file number (TFN) and Unique Student Identifier (USI) are submitted.

Loan Limits

There’s a cap on how much you can borrow. From 2020, a combined HELP loan limit applies, which includes HECS-HELP, FEE-HELP, and other HELP loans. For most students, this limit is $121,844, but it’s higher for courses in medicine, dentistry, and veterinary science.

Repayment Tips

Understand Your Repayment Obligations: Know when and how much you need to start repaying based on your income.

Voluntary Repayments: You can make voluntary repayments at any time to reduce your debt faster and avoid indexation increases.

Overseas Repayment: If you work overseas, you still need to repay your HECS-HELP debt if your income exceeds the threshold.

By understanding HECS-HELP and its intricacies, you can better manage your educational finances and focus on your studies without the immediate burden of tuition fees.

Scholarships

Scholarships are usually merit-based, meaning they are awarded based on academic achievement, sporting excellence, or other criteria such as leadership qualities or community service.

Some scholarships may also be need-based, designed to assist students who are experiencing financial hardship. Scholarships can cover various costs including tuition fees, accommodation, and study materials.

Inside the Choosing Your Uni platform you’ll find quick links to almost all of the scholarships offered by Australian universities and our AI tools can help you quickly identify which scholarships you may be eligible for.

What Does The Acronym "HECS" Stand For?

"HECS" stands for the Higher Education Contribution Scheme. It is, in fact the old name for the HELP (Higher Education Loan Program) scheme. However, because the term "HECS" was so well known, it was retained as part of the naming of the new Higher Education Loan Program.

Is Getting a HECS Debt a Good Idea?

Research has consistently shown that university graduates will earn more across their lifetimes than non-uni grads, even when paying off a HECS debt. This trend was reconfirmed in a 2024 study .

Is getting a HECS debt a good idea?
Whilst nobody enjoys owing a debt, if your interests and goals involve having a career that requires a degree, it's a necessary step. HECS also isn't like other debts, in that you only pay it back as part of your taxes.

Where getting into debt for education doesn't make sense is if you know that you're not academic and that you're not ready for uni. In that case, think about taking a gap year, doing a TAFE program or even starting to work. You can always come back and study at uni later as a "mature age" student.