After you’ve finished university, an annual statement telling you how much you still owe for your education becomes a familiar ritual for anyone who couldn’t pay up front. However, that ritual will change for students who have taken advantage of the HELP (Higher Education Loan Program) scheme, with no more postal statements from June.
An update from the ATO last week notes that HELP statements showing how your debt has been indexed will no longer be automatically be sent out from June 2011. Former students who want to request an update (so they know what their compulsory repayments will be) can do so, but the process is said to take up to five days. Any amount you owe for HELP repayments will still appear on your tax assessment.
As we noted in our Budget roundup, HELP repayments greater than $500 will now attract a 5% bonus payment, which could help you reduce tertiary education debt earlier.