Jody is employed as a Civil Engineer earning $130,000 and is studying a Master in Business Administration, costing $37,000 and takes 1½ years. Her salary puts her into one of the higher repayment thresholds at 9.5% resulting in a monthly FEE-HELP repayment of $1029.17.
Using her Study Loan, Jody will likely drawdown on the facility 4 times so her first drawdown is $9,250 and her monthly repayments start at $172.37. As she draws on the facility, her payments step up at each draw to a maximum $722.11 when it’s fully drawn.
Remember as she pays for her course; the course invoices paid in that financial year, the loan interest and course related expenses are tax deductible.
Marcus is employed as a Psychiatric Nurse earning $95,000 and intends to start studying for his Master in Health next year. However, he has not made his final decision on where he will study but knows he needs the flexibility to either finish the course early, or more likely extend the time taken.
It will cost around $30,000 and he has $5,000 savings. Regardless of how quickly he completes the course his threshold repayments are the same at 7.0%, resulting in monthly repayments of $554.17.
By choosing a Study Loan for $25,000 his first drawdown of $6,250 is paid to the Education Provider and his loan repayments start at $114.38. Then he can control how quickly he wants to complete the course and how quickly he draws on the loan to fund it. Knowing of course, that he has the flexibility to pay some of the fees himself, or draw on the loan.