Latest news with #HECS
Yahoo
5 days ago
- Business
- Yahoo
Aussie with $60,000 HECS debt reveals why he isn't paying it off: 'Opportunity'
Australians with HECS debts are being urged to reconsider putting extra money towards their student loans. While it might make sense to chuck extra cash at your HECS to pay it off sooner, you could be in a much better position if you put your money elsewhere. That's what Noah Capozza has done with his $60,000 loan. The Link Wealth financial advisor told Yahoo Finance investing your cash can leave you better off, as HECS debts are hit with indexation every year. "The idea behind that is the average rate of return on the share market, which, over the last 100 years, is 9 per cent year-on-year," he said. Gen Z graduate with $50,000 HECS debt reveals degree she regrets Centrelink payment alert for 58,000 Aussies in caravans Couple's side hustle amid double redundancy secures $13 million fortune Comparatively, he said the rate of HECS indexation should be in the 2-3 per cent range. Capozza said it could be a better idea to make your money grow rather than fight against that yearly increase in your student loans. The average HECS debt is $27,600, and your employer has to send a percentage of your salary towards that loan every pay cycle, which is based on how much you earn. If you're on the average salary of $102,742 per year, 5.5 per cent of your pay, which is roughly $5,650 per year or $470 per month, would go towards HECS. If you put no additional money into that loan, it would take nearly 59 months, or close to five years, to pay it you put $500 per month on top of your employer's contributions, that loan would be paid off in a little more than 28 months or two and a third years. Those two time frames are tricky because they don't take into account the yearly indexation that hits in June, which can increase the loan by hundreds of dollars. In Capozza's case, his HECS went up by $1,800 recently thanks to this year's indexation. Compare that with the 8-10 per cent rate of return on the share market, Capozza said it made sense to him to invest his cash rather than put it towards his student loans. But the average rate of return and isn't guaranteed. However, even if you put it into a high-interest savings account, which was around the 5 per cent mark, your money could be growing more than the rate of indexation. Victoria University found recently that the average amount of time it takes to pay off a HECS debt is 9.9 years. If you directed that $500 monthly contribution towards a share portfolio, you would have $37,712 in your account after five years, based on a 9 per cent return. If you invested that same $500 over 10 years, you would have $96,757 in your portfolio. That money is purely from your investment and compound interest, and doesn't take into account any dividends you might earn on top. You can also take that money out of your portfolio at any point, whereas sending cash to your HECS debt means you say goodbye to that money forever. "You can just let it grow and compound over time," Capozza told Yahoo Finance. "It could provide you with the opportunity to either pay your HECS off or have other opportunities that will come up later down the track." Capozza sees plenty of clients worried about paying off their HECS and whether it will affect their borrowing capacity if they want to buy a home in the future. But lenders don't ever look at the size of the debt when assessing your suitability for a loan. Instead, they watch how much of your salary goes towards it. "You could have a million dollars, you could have $10. It actually has no difference," he said. Instead of seeing Capozza's $60,000 balance, a bank would only assess him on the $470 leaving his pay every month, if he were on the average salary. The financial advisor also said diverting your money towards investments could be a better idea as the government has been making huge strides in the HECS department recently. A poll of more than 1,600 Yahoo Finance readers found 46 per cent of people thought they would never fully pay off their HECS by themselves or without government support. Last year, the Albanese government changed how indexation worked, so that it would be whatever was lower out of the consumer price index and the wage price index. It changed the 7 per cent indexation rate in 2023 to just 3.4 per cent. Additionally, Labor promised to wipe 20 per cent of every person's student loans. "I dare say that will probably happen every time there's an election going on, I'm sure they'll push some sort of agenda to help out with HECS debt," Capozza said. But he insisted that anyone who is thinking about where to put their extra cash should speak to an expert beforehand to make sure it's the right direction for them. Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati
The Advertiser
20-06-2025
- Business
- The Advertiser
If you're going for a home loan but still have a HECS debt, you might want to wait
People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect. Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage. The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts. The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage. The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months. Treasurer Jim Chalmers said the changes would make lending rules fairer. "We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said. The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis. APRA has written to lenders and the industry to advise them of the changes and their new obligations. The revised standards for banks will come into effect on September 30, 2025. In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances. The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner. Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home. "HECS was never meant to be a handbrake on owning a home," he said. "That's not fair and we're fixing it." The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election. During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected. The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025. The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied. This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction. People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect. Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage. The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts. The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage. The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months. Treasurer Jim Chalmers said the changes would make lending rules fairer. "We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said. The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis. APRA has written to lenders and the industry to advise them of the changes and their new obligations. The revised standards for banks will come into effect on September 30, 2025. In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances. The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner. Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home. "HECS was never meant to be a handbrake on owning a home," he said. "That's not fair and we're fixing it." The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election. During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected. The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025. The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied. This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction. People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect. Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage. The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts. The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage. The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months. Treasurer Jim Chalmers said the changes would make lending rules fairer. "We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said. The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis. APRA has written to lenders and the industry to advise them of the changes and their new obligations. The revised standards for banks will come into effect on September 30, 2025. In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances. The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner. Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home. "HECS was never meant to be a handbrake on owning a home," he said. "That's not fair and we're fixing it." The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election. During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected. The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025. The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied. This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction. People with outstanding student loans will have an easier time getting a mortgage from September, when new lending rules will take effect. Banks will be able to disregard higher education loan program (HELP) debts, which include HECS debt, when assessing a homebuyer for a mortgage. The changes were finalised this week, after the Albanese government made a pre-election pledge in February to level the playing field for people with student debts. The Australian Prudential Regulation Authority has advised banks to remove HELP debt from debt-to-income reporting, a metric used to determine a person's capacity to repay a mortgage. The regulator has also clarified that it may be reasonable for banks to completely disregard a person's HELP debt from serviceability assessments, where it's expected the loan will be paid off within 12 months. Treasurer Jim Chalmers said the changes would make lending rules fairer. "We're making sure young people with a HELP debt are treated fairly and supporting them to get into the property market," he said. The changes mean a dual-income household with two student debts could borrow an additional $50,000 in the year they expect to pay off their student loan, according to the government's own analysis. APRA has written to lenders and the industry to advise them of the changes and their new obligations. The revised standards for banks will come into effect on September 30, 2025. In its letter to lenders, APRA said the changes would provide regulatory clarity and reaffirm the flexibility banks had in considering borrowers' individual circumstances. The regulator expects the changes will allow some borrowers with student debts to secure a home loan sooner. Education Minister Jason Clare said the Universities Accord found that banks' assessments of student debt made it harder for young Australians to buy a home. "HECS was never meant to be a handbrake on owning a home," he said. "That's not fair and we're fixing it." The federal government will also move ahead with its plan to reduce student debts by 20 per cent, something it committed to before the May election. During the election campaign, Prime Minister Anthony Albanese promised the legislative changes would be his first priority if his government was to be re-elected. The government has reaffirmed this, saying it will be the first piece of legislation introduced when Parliament returns on July 22, 2025. The 20 per cent reduction will occur once the legislation passes Parliament. However, the government has clarified the discount will be calculated based on a person's HELP debt amount as at June 1, 2025, before indexation was applied. This means the 2025 indexation will only apply to the remaining balance after the 20 per cent reduction.
Sky News AU
17-06-2025
- Business
- Sky News AU
From PM-in-waiting to dog-patting VC: Bill Shorten roasted for ‘cringe' social media video while in $860,000 uni boss job
Former Labor leader turned university boss Bill Shorten has been savaged online for posting a bizarre social media video described by viewers as 'cringe' and 'slop'. The video has prompted debate about his lucrative $860,000 per year salary and the state of university leadership amid massive job cuts. The failed Labor leader was once on track to become prime minister before it all fell apart at the 2019 election in dramatic fashion when he proposed massive changes to negative gearing and franking credits. But nowadays, Bill Shorten has retired from politics into a cushy Vice Chancellor position at University of Canberra worth $860,000, at the same time the institution cuts more than 150 staff. While those academics pack up their desks, Mr Shorten is posting quirky social media videos to his personal Instagram. In the video, Mr Shorten can be seen awkwardly patting a dog while two young girls run around him in circles and dance in sped-up footage reminiscent of 'Benny Hill'. The scene, presumably intended to be light-hearted, was quickly met with ridicule online. 'Shorten's salary is reported as $860k per year and you serve this cringe slop,' one user said in response. 'A million bucks a year as VC for this?' another said. 'Reminder he's getting paid $860,000 a year while your HECS debts are insanely high, oh and by the way he also got his degree for free too. 'My HECS is paying Bill to run delegate numbers.' The backlash has amplified ongoing criticism of Mr Shorten's ascension to the University of Canberra's top job. His appointment to Vice Chancellor, without professional academic experience, doubled his salary from the $404,000 he earned as a frontbencher in the Albanese government. The $860,000 package includes superannuation and benefits. Meanwhile, the university has saved about $30 million by letting go of 150 staff.
Yahoo
13-06-2025
- Business
- Yahoo
$330 a week cash boost available for thousands in weeks
Thousands of Australians studying nursing, teaching, midwifery and social work will soon be able to access the federal government's Prac Payment. These students often report experiencing 'placement poverty' as they need to work unpaid for up to 26 weeks in order to graduate. The new Commonwealth Prac Payment will provide a $331.65 a week payment for eligible students while they are undertaking a placement. This is benchmarked at the single Austudy rate. Prime Minister Anthony Albanese said students shouldn't have to worry about whether they could afford to do placements. RELATED HECS indexation amount for 3 million Australians revealed: 'Add $882' ATO, Centrelink warning over $100 million Powerball lottery win Centrelink cash boost coming from July 1 for millions of Aussies 'If you're studying nursing at TAFE, you can apply starting this week. For uni students, you'll be able to apply from the 1st of July,' he said. 'Whether you want to teach the next generation or care for your fellow Australians, we're providing real support to help you graduate.' Around 68,000 higher education students and more than 5,000 eligible VET students are estimated to be eligible for the payment each year. The government has said it will invest $427.4 million over the forward estimates to introduce the payment from July 1. Yahoo Finance has spoken to students required to do unpaid placements who said the hundreds, if not thousands, of lost hours of potential work mean they struggle to afford basics like food and housing. The payment was a recommendation of the Australian Universities Accord, which reviewed the performance and effectiveness of the higher education system. Teaching students, for example, have to do 16 weeks of unpaid practical experience, nurses do 20 weeks, and social workers do 26 weeks. The payment will be available to domestic students studying a Bachelor's or Master's of nursing, teaching, midwifery and social work, or a Diploma of nursing, while they are undertaking a mandatory placement. Students will need to be on a Commonwealth income support payment, such as ABSTUDY, Austudy, Youth Allowance or DVA Education Allowance. Or they will need to show that they work more than 15 hours per week during their normal uni studies and don't earn more than $1,500 per week before tax. The payment won't be available to allied health professions, despite the placement requirements also being in place for them. The government will be cutting HECS debts by 20 per cent and said this will be the first piece of legislation introduced when parliament returns on July 22. This will be backdated so it applies from June 1 this year, before indexation was applied. The indexation rate this year was 3.2 per cent, based off the Consumer Price Index. Someone with the average $27,600 debt would see around $5,520 wiped from their outstanding loans. The minimum repayment threshold for student loans is also set to be raised on July 1. Those with debt will start repayment loans once their income hits $67,000, up from the current $54,000 threshold. Compulsory repayments will only be calculated on the income above the $67,000 threshold instead of the total annual in retrieving data Sign in to access your portfolio Error in retrieving data
The Hindu
06-06-2025
- Business
- The Hindu
Seminar on Environmental Clearance Requirements and Compliance
Hubert Enviro Care Systems (HECS), in association with CREDAI Chennai, organised a seminar on Environmental Clearance Requirements and Compliance. Mohammed Ali, Managing Director of South India Shelters and President of CREDAI Chennai, highlighted about the bottlenecks faced in securing Environmental Clearances (ECs) for construction projects. He pointed out the potential implications of the recent Supreme Court judgment on the sector, calling for greater clarity, streamlined procedures, and proactive stakeholder engagement. J.R. Moses, CEO of HECS emphasized the critical need to understand and adapt to the evolving legal landscape, according to a statement. Balasubramaniam, Professor of Chemical Engineering at Anna University and Member of the State Disaster Management Committee, spoke about waste management, emphasising the intersection of science and policy. He called for an integrated approach to turn environmental challenges into sustainable development strategies.
