VET FEE-HELP - Information for Students

What is VET FEE-HELP?

VET FEE–HELP is an income contingent loan scheme for the vocational education and training (VET) sector that is part of the Higher Education Loan Program (HELP).

VET FEE–HELP assists eligible, full fee-paying students to pay for all or part of their tuition fees at approved VET providers (providers) when studying one or more of the following VET accredited courses of study:

  • diploma*;
  • advanced diploma*;
  • graduate certificate; and
  • graduate diploma.

 

*With an approved VET credit transfer arrangement to a Bachelor degree with a higher education provider (HEP—a higher education institution approved to offer FEE–HELP to its students).

When will VET FEE-HELP be available?

Approved VET providers are able to offer VET FEE-HELP assistance to students during the second half of 2008.

How much VET FEE-HELP assistance can I access?

Eligible students may borrow up to the FEE–HELP limit over their lifetime. This applies no matter whether the assistance is through VET FEE–HELP or FEE–HELP.

In 2009, the FEE–HELP limit is $83,313, except for medicine, dentistry and veterinary science courses (that lead to initial registration as practitioners in those fields) where the limit is $104,142. The FEE–HELP limit is indexed on 1 January each year.

As a person uses VET FEE‑HELP to pay their tuition fees, the amount they may borrow in future is reduced.  Once a person has borrowed an amount equal to the FEE‑HELP limit (the indexed amount at that time), they will not be able to receive VET FEE‑HELP assistance (or FEE-HELP assistance) to pay tuition fees.  This applies even if a person has partially or fully repaid their VET FEE‑HELP (or FEE-HELP) debt.

How do I re-pay the VET FEE-HELP loan?
As the Australian Government pays the amount of your loan directly to your VET provider, students who access VET FEE-HELP assistance will repay the loan amount, including a 20% loan fee, through the tax system via compulsory and/or voluntary contributions.

You start repaying your accumulated HELP debt when your repayment income is above the minimum repayment threshold for compulsory repayment. The repayment thresholds are adjusted each year to reflect any changes in average weekly earnings. The minimum repayment income threshold for the 2008‑09 income year is $41,594. Your repayment income is made up of the following amounts from your income tax return for the income year:

  • your taxable income; plus
  • any amount your taxable income was reduced by a net rental loss; plus
  • any total reportable fringe benefits amounts shown on your annual PAYG payment summaries; plus
  • any exempt foreign employment income amounts included in your income tax return.