Commonwealth Consolidated Acts

HIGHER EDUCATION SUPPORT ACT 2003 - SECT 96.5

General

             (1)  If:

                     (a)  a student is entitled to an amount of * HECS-HELP assistance for a unit of study with a higher education provider; and

                     (b)  one or more * up-front payments have been made for the unit; and

                     (c)  the sum of all of the up-front payments made for all of the student's units of study:

                              (i)  that have the same * census date as that unit; and

                             (ii)  in relation to which the student is enrolled with the provider as a * Commonwealth supported student;

                            is less than 90% of the sum of the student's * student contribution amounts for all of his or her units; and

                     (d)  the sum of all of the up-front payments made for all of the units is $500 or more;

the Commonwealth must pay the amount of HECS-HELP assistance in accordance with subsections (2) and (3).

Payment of loan amount

             (2)  The Commonwealth must:

                     (a)  as a benefit to the student, lend to the student an amount equal to the difference between the amount of * HECS-HELP assistance for the unit and the * HECS-HELP discount for the unit; and

                     (b)  pay to the provider the amount lent in discharge of that amount of the student's liability to pay his or her * student contribution amount for the unit.

Payment of discount amount

             (3)  The Commonwealth must, as a benefit to the student, pay to the provider an amount equal to the * HECS-HELP discount for the unit in discharge of that amount of the student's liability to pay his or her * student contribution amount for the unit.

Meaning of HECS-HELP discount

             (4)  The HECS-HELP discount for a unit of study is an amount equal to one-ninth of the sum of all of the * up-front payments made for the unit.

Example:    Robert is required to pay a student contribution amount of $2,745 by 31 January 2012, and makes an up-front payment of $900 on 20 January 2012.

                   Robert is entitled to HECS-HELP assistance of $1,845 ($2,745 minus $900), which the Commonwealth must pay to the higher education provider.

                   The up-front payment exceeded $500 so there is a HECS-HELP discount of $100 (one-ninth of $900). The Commonwealth lends to Robert the remainder of the HECS-HELP assistance, an amount of $1,745 ($1,845 minus $100).