How to pay for university
By Brayden MillarPublished on
There's more than one way to pay for university. This guide explains the main options available in Australia, so you can understand what may work for you.
As a domestic student, you usually don't need to pay your university fees upfront. Instead, you can defer them through a government HELP loan and repay later through the tax system.
You can also pay upfront, look into income support while you study, or apply for scholarships that can help reduce your costs.
Below, we explain how the different options compare. A student advisor like myself can also talk you through which option fits your situation.
The main ways to pay for university
Option | What it is | Who it suits |
HECS-HELP | A government loan that covers your tuition fees if you’re in a Commonwealth supported place. You repay it through the tax system once you earn a certain income.* | Online and on-campus domestic students in a Commonwealth supported place, most often in undergraduate study. |
FEE-HELP | A government loan that covers your tuition fees if you're in a full-fee paying place. Also repaid through the tax system.* | Online and on-campus students in courses that aren’t Commonwealth supported, including many postgraduate courses and single subjects. |
SA-HELP | A government loan that covers the student services and amenities fee (SSAF), which goes towards things like student clubs, career advisors and wellbeing initiatives. The fee can be up to $373 in 2026 and $386 in 2027. | On-campus and some online students, who would rather not pay this fee upfront. |
Paying upfront | Paying your fees directly to your university by the due date, instead of deferring them. | Students who'd prefer not to take on a loan, or aren't eligible for one. |
Income support | Centrelink payments that help with living costs while you study, including Youth Allowance, Austudy and ABSTUDY. | Eligible online and on-campus students who need help with everyday costs. These payments don't cover tuition. |
Scholarships | Awards from universities, government or private organisations that reduce what you pay or help with other costs. | Anyone who meets the criteria. Worth checking early, since applications often close before study starts. |
*For 2026–27, you start repaying your HELP loan once your income reaches $69,528 a year, according to Study Assist.
To make sure you repay, all you need to do is let your employer know you have a HELP debt on your tax declaration every time you start a new job. After that, repayments will be taken from your pay automatically as part of your tax.
Government loans (HECS-HELP and FEE-HELP)
HECS-HELP and FEE-HELP aren't separate schemes – they're both types of HELP loan. Which one you use depends on whether the government contributes towards the cost of your course.
If you are enrolled in a Commonwealth supported place, the government will pay part of your tuition fees and you can use HECS-HELP to defer the rest. You will generally be enrolled in one of these places if you’re studying an undergraduate degree, though they’re also available in some postgraduate degrees.
If your place isn't government subsidised, you'll need to pay the full tuition fee. You would use FEE-HELP to defer this cost instead. You’re more likely to be in a full-fee place if you’re studying a postgraduate course or single subject.
Either way, you will only repay your fees later through the tax system once your income reaches the repayment threshold.
For full details on each loan type, visit our student loans page.
What I tell students:
The question I get asked most isn't which loan to pick, it's whether HECS-HELP and FEE-HELP are actually different things. They are, just not in the way people expect: it comes down to your place type, not your course.
Paying upfront
You can also pay your fees upfront by the due date, instead of taking out a loan. This suits students who'd rather not take on a HELP debt, as well as those who aren’t eligible because of their citizenship or residency status.
How you pay upfront will differ depending on your place type. If you’re studying on a full-fee basis through us, you can pay your fees upfront on the Open Universities Australia website at the same time you enrol. If you have a Commonwealth supported place, you pay your student contribution directly to your university instead of deferring it through HECS-HELP.
Paying your fees sets out how upfront payment works alongside the student loan options.
Income support while you study
If you're eligible, Centrelink payments can cover part of your everyday costs while you study, separate from tuition. Youth Allowance applies if you're under 25, Austudy if you're 25 or over, and ABSTUDY if you're an Aboriginal and/or Torres Strait Islander student.
Student allowances explained and Services Australia cover eligibility and how to apply.
Scholarships and other help
Scholarships and other support can reduce what you pay or help with course-related costs, and you don't need a perfect academic record to qualify.
Scholarships explained lists what you can apply for, and how to afford university covers the full range of ways to make study costs more achievable.
Which option applies to you?
Your situation narrows this down quickly. If you're a domestic student in a Commonwealth supported place, you will generally be able to apply for a HECS-HELP loan. If you're in a full-fee place, which is the case for many postgraduate and single subject students, FEE-HELP applies instead.
From there, it's a question of whether you'd rather defer your fees through a loan or pay upfront, and whether income support or a scholarship could also apply to you.
Get help working out your options
None of this needs to be sorted out alone. An Open Universities Australia student advisor can help you understand which payment option might suit you best in a Study Discovery consultation.
This is a free way to get information about higher education in Australia.
You can also use Help Me Choose if you’re still deciding what to study, or explore courses if you already have a study area in mind.
This article provides general information only and isn't financial advice. Figures and eligibility rules change, so check current details with Study Assist or Services Australia before making decisions about your own study and finances.
About the author
Brayden Millar
Student advisor specialising in fees and payment information
Brayden is driven by his purpose as a student advisor to make a real difference, especially for those who feel university is out of reach. He loves a good chat and relates particularly well to those moving from trades or vocational work into higher education.
FAQs about paying for university
What is the best way to pay for university?
There isn't one best way. It depends on your place type. If you have a Commonwealth supported place, deferring through HECS-HELP usually makes the most sense, since you won't pay anything until you're earning a certain income. If you're in a full-fee place, FEE-HELP plays the same role. Income support and a scholarship can reduce the pressure even more on top of either loan.
How do Australians pay for university?
Most domestic students defer their fees through HECS-HELP or FEE-HELP and repay through the tax system once they're earning enough, rather than paying anything before or during their course. A smaller number pay upfront, and many combine a loan with income support or a scholarship to cover living costs as well as tuition.
Can you pay university fees upfront instead of taking a loan?
Yes. Domestic students can choose to pay their fees directly to their university by the due date, rather than deferring them through a HELP loan. It's worth weighing this up against deferring, since a loan lets you spread out the cost and start earning from your qualification before you've paid for it in full. See paying your fees for how that works in practice.
