University Savings Goal Calculator

Don't want to graduate with massive HECS debt? Set a savings goal for your tuition, accommodation, or study abroad exchange and see how much you need to save each month.

Your Savings Goal

$
$

Timeline & Bank Details

Yrs
%
Many Australian banks offer 4.5% to 5.5% bonus interest.

Required Monthly Contribution

To reach your goal on time

$0
Total Principal You Save $0
Starting Balance $0
Bonus Bank Interest Earned $0
Final Goal Reached $0

Saving for Education in Australia

While HECS-HELP is heavily subsidised, it still leaves students with tens of thousands of dollars of indexed debt that silently eats into their future take-home pay. For many Australian parents (and proactive students), setting up a high-interest savings account to pay for university upfront is a massive financial advantage.

High Interest Savings Accounts (HISA)

Australian banks frequently offer highly competitive 'bonus' interest rates (often above 5.00% p.a.) if you meet certain conditions. These conditions usually require you to deposit a minimum amount every month and make zero withdrawals. If you miss the condition, the interest rate plummets to a 'base rate' of almost zero. This calculator assumes you meet the bonus criteria every month, allowing your savings to rapidly compound.

Upfront Payment Discounts

In the past, the Australian Government offered a 10% discount if you paid your HECS-HELP tuition fees upfront (before census date) rather than deferring them to a loan. While this specific discount was abolished, paying upfront still saves you from the lifetime compound effect of HECS indexation, which recently spiked to over 7% during high-inflation periods.

Other Education Costs

Beyond tuition, saving is critical for the hidden costs of university life:

Related Calculators

HECS Repayment Education Loan University Savings Goal

Learn about HECS-HELP and indexation at the Australian Taxation Office (ATO).

10 Frequently Asked Questions

1. What is HECS-HELP?
The Higher Education Loan Program helps eligible students pay their tuition fees. Repayments are processed through the tax system.
2. Is interest charged on HECS?
No, HECS debt does not accrue interest. Instead, it is indexed annually to inflation (CPI) to maintain its real value.
3. When do I start repaying HECS?
You only start making compulsory repayments when your income exceeds the minimum repayment threshold for that financial year.
4. How is HECS indexed?
On June 1st each year, the outstanding balance is multiplied by the indexation rate. Recently, the government changed this to the lower of CPI or WPI.
5. Does HECS affect getting a home loan?
Yes, banks treat your compulsory HECS repayment as an ongoing expense, which reduces your borrowing power.
6. Can I make voluntary repayments?
Yes, you can make voluntary payments to the ATO via BPAY at any time to reduce your balance before indexation occurs.
7. Are there bonuses for voluntary payments?
Historically there were, but the government currently does not offer a discount or bonus for voluntary HECS-HELP repayments.
8. What happens if I move overseas?
If you move overseas, you are still required to declare your worldwide income to the ATO and make HECS repayments if you earn above the threshold.
9. What is a FEE-HELP loan?
Similar to HECS-HELP but for full-fee paying places. FEE-HELP sometimes incurs a 20% loan fee for undergraduate courses.
10. How is the repayment rate determined?
The repayment rate is a percentage of your Repayment Income, starting at 1% and scaling up as you earn more.