VET FEE-HELP Guidelines

1. VET FEE-HELP
A Guide for Enrolment Advisors

2. Introduction
VET FEE-HELP is a Commonwealth Government Loan program designed to
assist eligible VET students pay their tuition fees for certain higher-level VET
qualifications.
VET FEE-HELP is available for:
• Diploma
• Advanced Diploma
• Graduate Certificate
• Graduate Diploma
Students can choose to use a VET FEE-HELP loan for all, part or none of their
tuition fees. Students may choose to pay all of their tuition fees upfront, or pay
a some of the tuition fees upfront and use a VET FEE-HELP loan for the rest

3. Student Eligibility
• A student is eligible for VET FEE-HELP if they:
• Are an Australian Citizen OR hold a Permanent Humanitarianism VISA
and will be residing in Australia for the duration of the course; and
• Have not exceeded the FEE-HELP Limit; and
• Either have a valid TFN OR can provide evidence that they have
applied for a TFN with a valid Certificate of Application for a TFN

4. FEE-HELP Limit
• The FEE-HELP limit is the maximum amount you can borrow under VET
FEE-HELP (and FEE-HELP) over your lifetime
• It is neither reset nor topped up by any repayments that you make. If you
have reached the FEE-HELP limit (meaning the indexed amount for that
year), you are no longer eligible to access a VET FEE-HELP (or FEE-HELP)
loan
• In 2015, the FEE-HELP limit is $97,728 for most students (excluding
medicine, dentistry or veterinary science students)
• FEE-HELP limits are indexed on 1 January each year

5. Loan Fee
• There is no interest charged on VET FEE-HELP Loans. It is currently
indexed yearly by the Consumer Price Indexed (CPI)
• A fee applied to each individual unit paid for by a VET FEE-HELP loan
which does not count towards the FEE-HELP limit of $97,728
• The current Loan fee is 20% of the tuition fees charged for the units
• EXAMPLE:
– Tuition fee for 1 unit is $1,250
– Single Diploma contains 8 units equaling $10,000
– Loan fee is 20% of $10,000 = $2,000
– Total VET FEE-HELP loan taken out is tuition fee + loan fee
= $12,000

6. Repaying VET FEE-HELP loans
• Students will only start re-paying the loan once they start earning the
minimum threshold, currently set at $53,345 per financial year
• Payments are made through the Australian Taxation Office at a starting rate
of 4% of their income
• Students can choose to make their compulsory payments at the end of
financial year in a lump sum or can pay it off as part of their salary taxes
(must discuss this with employer)
• VET FEE-HELP repayments are calculated before tax so students will be
taxed on a lesser amount
• If a student passes away before any or all of the loan is repaid, the debt is
wiped. It will not carry over to family member or be taken out of the
deceased estate

7. 2014-2015 Repayment income Repayment % rate
Below $53,345 Nil
$53,345 - $59,421 4.0%
$59,422 - $65,497 4.5%
$65,498 - $68,939 5.0%
$68,940 - $74,105 5.5%
$74,106 - $80,257 6.0%
$80,258 - $84,481 6.5%
$84,482 - $92,970 7.0%
$92,971 - $99,069 7.5%
$99,070 and above 8.0%

8. Census Dates
• Census dates are very important to students as they are the last day a
student can withdraw their enrolment without incurring the VET FEE-HELP
debt
• This allows students to commence the course and ensure it is right for them
before committing to the loan
• The census date for an intake must be a minimum of 20% of the time
allowed to complete the course
• As our courses are 6 months, the census date must be a minimum of 35
days from enrolment
• If a student passes census, then decides to not engage, not submit
assessments or chooses to withdraw they are still liable to repay the VET
FEE-HELP loan

9. Withdrawing from the Course
• A student can withdraw from the course at any time BEFORE or ON their
census date without incurring any fees or charges
• If a student passes census they are still liable to pay for the tuition fees
regardless of whether they complete the course or not.
• If a student feels they need to withdraw after census due to serious illness
or special circumstances they must be able to prove that the circumstances:
– Were beyond the students’ control
– Did not make full impact on the student until on or after the census date
– Made it impractical for the student to complete the course requirements
• Students must submit their application for re-credit within 12 months of
withdrawal

10. Subsidised Students
• VET FEE-HELP is also available to eligible state or territory subsidised VET
students who are enrolled with a provider in a state or territory that has
implemented subsidised VET FEE-HELP arrangements.
• A subsidised VET student may use VET FEE-HELP to pay their tuition fees
for VET qualifications at the following levels:
– diploma or advanced diploma, or
– selected certificate IV qualifications that are part of the VET FEE-HELP
Certificate IV Trial.