Hi Paul,

I've just read the article on "should I pay my HECS off"...

You state that

"Another interesting point is how much you might earn. Your repayments are taken from your pre-tax income once you earn above $67,000."

From my understanding the HECS is calculated on your gross earnings, however, it is not deducted from your "pre tax" earnings, it is deducted from post tax earnings.

My son is in his 3rd year of a 4 year university course. I was always of the belief that paying off, if able, was a good thing. I'll review this now. We (parents) were prepared to contribute half the HECS debt for him as a leg up, having already paid 2 semesters. Perhaps it's best to invest the other money for him to use at a later date.

Thanks

Donna

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