Higher Education Loan Program (HELP) & Repayments Thresholds 2013/14

The Australian Government is not only serious about promoting its business and tourism sectors but also invests in the human talent. If one finds it untrue then please take a look at the facilities and support being offered by Australian Government to the accounting and tax return Sydney students in every city. Are you familiar with the term HELP?

Higher Education Loan Program is the best what any student could get in any part of the world. What it does is allows the students to choose the career path of their choice by getting admission into any university for gaining higher education while the fee is being paid through loan borrowed money. Three factors come into play for the purpose of amount to be borrowed. The factors are eligibility, university and specific circumstances. There are two basic concepts which one must understand before going ahead with application of the Higher Education Loan Program. Being enrolled in certified private institution or university, Commonwealth fee paying place or support place could be offered to you. On the other hand, studying in a certified VET provider would enable you to get status of fee paying student or subsidized state student.

There are different types of loans being offered by the Australian Government to support students in the best possible manner. We have briefly discussed all these types below for your better understanding.

HELP via HECS – It is the scheme where loan is provided to students only who are eligible and Commonwealth supported. It helps in making student contributions via loan amount or significant discount in fee.

HELP via FEE – As simple as its name, the loan is provided to students who are eligible for the purpose of making fee payments directly.

HELP via SA – It is the loan type which only pays specific part or whole payments related to student amenities and services. Students in huge number apply for this loan type.

HELP via OS – The loan is specifically created to support Australian residents studying overseas in an approved institution. It is also only provided to Commonwealth supported students who are eligible.

HELP via VET FEE – Those studding tax return in Melbourne involved in vocational education for higher level and are eligible could get this loan to pay the complete fees. However, only VET institutes which are certified can be considerable.

2013/2014 HELP Rates for Repayment

The particular loan scheme was introduced by Australian Government in 2005 realizing the support needed by students for pursuing their careers and dreams. HELP replaced the Higher Education Contribution Scheme in 2005. The important question to ponder is when one has to repay the loan? This process starts when your repayment income is greater than minimum amount of threshold. When you reach certain repayment income threshold, it becomes compulsory to make the payments. The rates change every financial year. The important stat to remember is you are not implied to make payments if your repayment income is not above $51,308. We have briefly discussed the varying rates of repayment for Higher Education Loan Program. The rates vary only due to difference in income.

• • 0% in case HRI is lesser than $51,308
  • 4% repayment rate for HELP Repayment Income falling in category of $51,309 to $57,153
  • 5% applies to $57,154 – $62,997 repayment income
  • 5% is implied upon HRI in range of $62,998 – $66,308
  • 5% rate of HRI is applicable to range of $66,309 to $71,277
  • 6% applies to HRI between $71,278 – $77,194
  • 5% is the rate for range of $77,195 to $81,256 repayment income
  • 7% is applicable to repayment income of $81,256 to $89,421
  • 5% on HRI ranging from $89,422 to $95,287
  • 8% on any HRI exceeding $95,287

The entire compulsory repayment amount for the loan is calculated while processing of tax return is done. The repayment income is kept as base for this loan. For better understanding of this concept let’s clear the repayment income for HELP.

The repayment income for HELP consists of several factors such as:

1. Income tax applied upon
2. Rental loss or other net losses due to investments
3. Amount of fringe benefits to be reported
4. Super contributions which could be reported
5. Exemption of income generated via overseas employment

There is serious responsibility on the student who would like to provide bookkeeping services Sydney in a future and has gained the loan via HELP. Repayment is a must if your income is greater than above mentioned minimum threshold. ATO provides information to the authorities handling HELP cases about any defer occurring in payments on other loans. Every individual has a separate account which keeps up to date record for repayments, indexation and debts. The account information can be accessed in case you want to know about the amount of repayment which is compulsory. There are several things to look for when applying for HELP.

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