🚀 go-pugleaf

In <9226920.6395@mulga.cs.mu.OZ.AU> pmiach@ee.mu.OZ.AU (Paul Miach) writes:
>	Most people I know have gotten a little booklet about Austudy, called;
>"AUSTUDY and ABSTUDY. More Money for More People."
>	Not being eligible for Austudy, I was happy that I might atleast be
>able to get a $2000 'intrest free' loan. So how do I repay it? Well, on page
>4;
>	"o You can repay the Supplement in a number of ways. you can get a 15%
>	   discount on repayments made within five years. Or you can repay it
>	   later through a charge on top of your income tax."
>	WoW!!! So I can 'borrow' $2000, pay back $1700 on the spot ($1700 ==
>85% of $2000), and pocket the $300 profit. And I can do this every year.
>	Now, I doubt that they (DEET) could have over looked it. So, does
>anybody know what stops me from getting $300 pa for nothing? Or can I?

BZZZZT. Sorry Paul, but we do have a lovely consolation prize of a set of 
Ginsu steak knives for you...

What stops you from getting the $300 p.a. for nothing is 
1) the fact that you're not eligible for Austudy
2) the fact that even if you were eligible for Austudy, you have to "trade
in" half the value of the loan in Austudy paymentsin exchange for the 
loan. i.e. Jo Bloggs has $6000 p.a. in Austudy or Abstudy, but decides to 
"trade in" $2000 for a loan of $4000. As the booklet screams in bold type,
** This would give you a total of $8000 **. In fact, in the long run it
would leave you with $4000 (or $4300 if you paid off the loan within 5 yrs)
of your grant instead of the original $6000.

Hopefully most students will be smart enough not to give the government
back any of their grant which will never have to be repaid.

This so-called "interest free loan" actually has a 33% interest charge (but
not per-annum :-).

Marty.
---------------------=============***O***=============-------------------------
Martin J. Gleeson  | Computer Science, Melbourne Uni, Oz |    ...  __o    Outta
gleeson@mundil.cs.mu.oz.au |     E Pluribus Unix         |  ...   -\<,       my
"We gladly feast on those who would subdue us." - Addams |  ....(_)/(_)..  way!
 "I can't give you brains, but I can give you a diploma." - The Wizard of Oz
---------------------=============***O***=============-------------------------