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Old 19th Jun 2010, 10:55
  #48 (permalink)  
biggles7374
 
Join Date: Sep 2006
Location: Australia
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Don't forget that in addition to the 25% "loan fee" the balance of the FEE-HELP debt is increased by the CPI % each year for outstanding balances.

Assuming that the amount repaid to jetstar over the 6 years is taken from gross salary and therefore remaining salary falls beneath the threshold for FEE-HELP repayment, during the initial years the FEE-HELP debt will grow by approx. $97k (ie an additional 12k) assuming no FEE-HELP is repaid in the first 6 years and a CPI of 2.5%.

Consequenty the cashflow will not be as severe as has been suggested.

FEE-HELP will be repaid over a much longer period although the total amount paid will increase significantly.
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