Higher Education Support Amendment (Job-Ready Graduates and Supporting Regional and Remote Students) Act 2020 (93 of 2020)
Schedule 4A Up-front payment discount
Higher Education Support Act 2003
7 After section 96-1
Insert:
96-2 Payments to higher education providers - partial up-front payment of student contribution amount
Up-front payments made for one unit of study only
(1) If:
(a) a student is entitled to an amount of *HECS-HELP assistance for a unit of study (the relevant unit ) in which the student is enrolled with a higher education provider; and
(b) one or more *up-front payments have been made in relation to the relevant unit; and
(c) both of the following apply:
(i) the amount of that up-front payment, or the sum of those up-front payments, is less than 90% of the student's *student contribution amount for the relevant unit;
(ii) the amount of that up-front payment, or the sum of those up-front payments, is $500 or more; and
(d) either:
(i) the student is not enrolled with a provider as a *Commonwealth supported student in relation to any other units of study that have the same *census date as the relevant unit; or
(ii) if the student is so enrolled in relation to one or more such other units of study, no up-front payments have been made for any of those units;
the Commonwealth must pay the amount of HECS-HELP assistance for the relevant unit in accordance with subsections (3) and (4).
Up-front payments made for more than one unit of study
(2) If:
(a) a student is entitled to an amount of *HECS-HELP assistance for a unit of study (the relevant unit ) in which the student is enrolled with a higher education provider; and
(b) one or more *up-front payments have been made in relation to the relevant unit; and
(c) the student is enrolled with the provider as a *Commonwealth supported student in relation to one or more other units of study that have the same *census date as the relevant unit; and
(d) one or more up-front payments have been made in relation to one or more of those other units; and
(e) both of the following apply:
(i) the sum of the up-front payments made in relation to the relevant unit and those other units is less than 90% of the sum of the student's *student contribution amounts for the relevant unit and those other units;
(ii) the sum of the up-front payments made in relation to the relevant unit and those other units is $500 or more;
the Commonwealth must pay the amount of HECS-HELP assistance for the relevant unit in accordance with subsections (3) and (4).
Payment of loan amount
(3) 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 relevant unit and the *HECS-HELP discount for the relevant unit; and
(b) pay to the provider the amount lent in discharge of that amount of the student's liability to pay the student's *student contribution amount for the relevant unit.
Payment of discount amount
(4) The Commonwealth must, as a benefit to the student, pay to the provider an amount equal to the *HECS-HELP discount for the relevant unit in discharge of that amount of the student's liability to pay the student's *student contribution amount for the relevant unit.
HECS-HELP discount
(5) The HECS-HELP discount for a unit of study is an amount equal to one-ninth of the *up-front payment, or the sum of all of the up-front payments made, in relation to the unit.
Example: Robert is required to pay a student contribution amount for a unit of study of $2,745 by 31 January 2021, and makes an up-front payment in relation to the unit of $900 on 20 January 2021.
Robert is entitled to HECS-HELP assistance for the unit of $1,845 ($2,745 minus $900), which the Commonwealth must pay to the higher education provider.
The up-front payment in relation to the unit 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 in relation to the unit, an amount of $1,745 ($1,845 minus $100).
96-3 Payments to higher education providers - full up-front payment of student contribution amount
If:
(a) a student is entitled to an amount of *HECS-HELP assistance for a unit of study in which the student is enrolled with a higher education provider; and
(b) one or more *up-front payments have been made in relation the unit; and
(c) the amount of that up-front payment, or the sum of those up-front payments, is equal to 90% of the student's *student contribution amount for the unit;
the Commonwealth must, as a benefit to the student, pay to the provider the amount of HECS-HELP assistance for the unit in discharge of that amount of the student's liability to pay the student's student contribution amount for the unit.
Note: The student does not incur a HECS-HELP debt in relation to the amount of HECS-HELP assistance paid by the Commonwealth to the provider under this section.