University fees The Higher Education Contribution Scheme (HECS) enable students to borrow from the federal government low interest rates and pay back when they have obtained employment.
Payments Each year, HECS contributions are calculated according to the Higher Education Funding Act 1988. The introduction of a nationwide goods and services tax (GST) 2000 has no bearing on the calculation of HECS fees. Students pay their debt once their income exceeds average weekly earnings.
Postgraduate Education Loans Scheme (PELS) - Introduced in 2001, PELS is an interest- free loans facility for eligible students enrolled in fee-paying, postgraduate non-research courses. Similar to the HECS deferred payment arrangements, PELS allow eligible students to obtain a loan from the Commonwealth government to pay all or part of their tuition fees incurred from 2002 onwards. The Commonwealth pays the amount of the loan directly to the student’s institution and the student repays the loan through the taxation system once his/her income reaches the minimum threshold for compulsory repayment.
Up-front Fees The dramatic increase in the number of postgraduate courses requiring students to pay fees up-front also caused a rise in the number of undergraduate places requiring the same. Federal government and major universities claim that these changes are essential for Australian universities to remain strong and vibrant. However, fierce criticisms from student bodies argue that such a system creates inequality to several groups. Particularly are at disadvantage by the said system include rural and indigenous students, and those from non-English speaking backgrounds, and low-income families. Supporting the student bodies call for a reversion to deferred payment and increase in scholarships, many regional, small or newly established universities by not accepting full fee-paying local students.
AUSTUDY and Youth Allowances In 1998, the Commonwealth government changed the way it provided financial assistance to university students. Youth Allowance in particular, replaced much of the old AUSTUDY scheme. Payments are now administered by the Department of Family and Community Services and delivered by Centrelink. These services aim to provide an equal opportunity for access to education by all Australians. Introduced in 1993, university students are also eligible to apply for Student Financial Supplement Loan (SFSL). Furthermore, the ABSTUDY scheme provides financial assistance for eligible Australian Aboriginal and Torres Strait Islander students undertaking approved tertiary education courses. (http://www.hecs.gov.au)
