Affording Higher Education: Government Support, Budgeting, and Savings

According to the government’s Study Assist website, a three-year commerce or law degree could be around $50,000 – and that’s just the start.

Many Australians believe they can’t afford a tertiary education, but the cost of university, TAFE or other higher education doesn’t have to be prohibitive.

While parents often help fund their child’s further education – sometimes even mortgaging the family home! – students seek part-time jobs, juggling work commitments with study.

Situations like these can be stressful and not ideal for anyone.

There are other solutions, though, and with a little forward planning, it’s possible to focus on education, rather than finances.

Government support

The government’s Commonwealth Supported Place (CSP) scheme can support eligible students by paying part of the cost of some university courses.

The balance of the fees can generally be deferred through the Higher Education Contribution Scheme (HECS) or Higher Education Loan Program (HELP). These government arrangements fund education through a loan. After completing their studies and finding work, students begin making loan repayments once their salary reaches $69,528 in the 2026/27 financial year.

Check out the Australian Tax Office (ATO) website for study support repayment information.

Additionally, universities and other education providers offer grants, bursaries and scholarship programs which are worth investigating.

Regional students relocating to undertake studies, may qualify for further support. You can find information on the government’s Study Assist website.

Budgeting

Managing finances while studying goes beyond tuition fees. Students living away from home have accommodation, food, transport and other living expenses. Even when living at home, there are additional costs.

Stay on top of finances by creating a realistic budget that will help to,

• avoid unnecessary debt,

• help manage unexpected expenses,

• identify unnecessary spending.
  

A budget is not about restricting spending. Rather, it aims to provide the information needed to make informed spending decisions.

A budget can be as simple as a spreadsheet that itemises,

• income,

• expenses,

• discretionary spending,

• occasional expenses, etc.
  

The government’s free budget template, available on its Moneysmart website, provides a comprehensive guide to getting started.

Better still, a financial adviser can help develop a budget that adapts as circumstances change over time, and advise on diverting saved money to savings or debt repayment.

Parents planning ahead

Naturally, parents want to support their child’s pursuit of further education, but not every family can afford to do so.

The answer is to set up a dedicated savings plan as early as possible. Products like investment bonds or accounts in the child’s name can attract favourable tax concessions, but they tend to be complex and getting it wrong can be costly.

For this reason, financial advisers have a long history of working with families to develop educational savings strategies that suit the family’s time frame and budget.

Higher education is expensive but knowledge and guidance are the key.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.