HECS
HECS, or the "Higher Education Contribution Scheme", is a tertiary education funding scheme introduced in 1989 by the Australian Commonwealth Government. The Commonwealth subsidises the cost of tertiary education for Australian and New Zealand citizens and Australian permanent residents. The amount you pay for your tertiary education is your "HECS".
Lowering financial barriers to education
Perhaps most importantly, you can "defer" the cost of your studies, and only start paying back the subsidised cost of your degree (HECS) once you reach a certain income level (AU$24,365 for financial year 2002-3). This helps lessen the financial barrier to participating in tertiary education.
Cost of HECS to the student
If you pay your HECS upfront, or make voluntary repayment to your HECS debt, you pay 25% less. While you don't pay interest on your HECS, it is indexed to the CPI.
When first introduced, your HECS was roughly AU$2000 per year of full-time study, irrespective of course or institution. This was intended to represent about 25% of the cost of your course. Changes in government policy have meant that in 2003, the amount of HECS you pay varies according to course. Courses are "banded" according to expected earning power. There are three bands, with a year of full-time study costing:
- Band 1 (Arts, Education, Nursing etc): AU$3680
- Band 2 (Maths, Computing, Agriculture etc): AU$5242
- Band 3 (Medicine, Law, Dentistry etc): AU$6136.
Who administers HECS?
The Higher Education Contributions Scheme is jointly administered by the Department of Education, Science and Training (DEST) and the Australian Taxation Office (ATO)
Related Schemes
Related to HECS are:
- BOTPLS, or Bridging for Overseas-Trained Professionals Loan Scheme
- OLDPS, Open Learning Deferred Payment Scheme
- PELS, or Postgraduate Education Loan Scheme
History
In 1974, the ALP government under Gough Whitlam abolished fees for tertiary education in Australia. In 1983, new ALP leader Bob Hawke was responsible for reintroducing initially fees only for international students, and then in 1987 an up-front fee of $250 for all students. Protests against and boycotts of this fee resulted in the introduction in 1989 of the HECS system.
Sources and external links
Referenced By
Classification of degrees in Australia | Education in Australia | Secondary education in Australia
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