VET Student Loan

VET Student Loans is a scheme provided by the Australian Government to enable eligible full-fee paying students the opportunity to apply for a loan. Such a loan is to aid in the payment of all or part of a student’s tuition fees for a VET course of study in which the student is enrolled unless the student cancels their request for a VET Student Loan with the VET provider on or before the census day for the units of study that make up the course.

The loan will remain as a personal debt obligation until it is repaid to the Commonwealth. The signed Request for Commonwealth Assistance form applies to a loan for the entire VET course of study and is charged on a unit of study basis unless the student pays some of the tuition fees.

The loan is spread across the course with 6 census days one in each fee period.

This scheme is an extension of the FEE-HELP scheme (currently applicable to higher education students) and extends to students studying one or more of the following AQF level courses offered by IH Sydney Training Services (referred to as IH Sydney):

• BSB50120 Diploma of Business
• BSB50820 Diploma of Project Management
• BSB50420 Diploma of Leadership and Management
• BSB50620 Diploma of Marketing and Communication
• BSB60120 Advanced Diploma of Business
• BSB60720 Advanced Diploma of Program Management
• BSB60420 Advanced Diploma of Leadership and Management
• BSB60520 Advanced Diploma of Marketing and Communication

After you submit an enrolment application and satisfy the student entry requirements, IH Sydney Training Services will advise the Commonwealth Department of Education and Training you wish to access the VET Student Loan scheme.

You will receive an email from the Department with a username and password. You then create an online application. You must have your USI number and tax file number handy.

Note: All applications are signed electronically and the application will be treated as having been signed if the communication contains:

1. Student Identification Number
2. Student tax file number
3. An acknowledgement the student has read and understood the application
4. A confirmation by student of the accuracy of the information in the application.
5. If a student is under 18 you then print out the application form and have a parent sign, and provide this to IH Sydney.
6. If a student is under 18 but is independent, proof of independence, e.g. youth allowance receipt must be provided

By signing and submitting the form the person accepts that the VET Provider will automatically use the VET Student Loan for those VET units of study on the invoice notice and subsequent invoice notices in relation to the units that contribute to the course unless the student advises the VET Provider in writing that he or she does not wish to use VET Student Loans as his or her method of paying their tuition fees or any unit of study.

IH Sydney will issue an invoice 14 days prior to the census day for each unit of study. You will also receive a VET Student Loan Fee Notice 14 days before course commencement.

The day after the census day the student will incur a VET Student Loan debt for the units of study contained in the invoice notice if the student has not withdrawn from the VET unit of study on or prior to the census day indicated on the invoice notice or has paid upfront some or all the amounts due for the VET unit of study.

To be eligible for VET Student Loans assistance, a student must:

1. Satisfy the entry criteria including academic suitability requirements
2. Have not been offered an inducement to undertake the qualification of study
3. Be a full fee-paying student
4. Be an Australian Citizen or
5. a holder of a Permanent Humanitarian sub-class visa usually resident in Australia or
6. Be a New Zealand citizen who:
7. Holds a special category visa and has usually been resident in Australia for at least 10 years and
8. First entered Australia as a minor under 18 years of age and
9. Has lived in Australia for 8 of the last 10 years and
10. Has lived in Australia for at least 18 months in the past 2 years.
11. Has a FEE-HELP balance greater than zero – that is, they have not exceeded their FEE-HELP limit
12. Be enrolled in a unit of study that meets the course requirements
13. Provided IH Sydney with all information and documents including USI number, Proof of citizenship, Academic suitability etc.
14. Be undertaking the course primarily at a campus in Australia.
15. Be enrolled in the unit of study on or before the census day for the unit and remain enrolled at the end of the census day
16. Meet the Tax File Number (TFN) requirements
17. Has completed, signed and lodged with Department of Education and Training a Request for a VET Student Loan. This must be at least 2 days after enrolment in a unit or units of study and 14 days before the scheduled census day.
18. Applicants will also be required to advise the Secretary of Department of Education and Training you wish to continue to use the VET Student Loan scheme throughout the course

The census day is the date by which an enrolment can be cancelled without incurring tuition fees for the course or part of the course.

The census day of a unit of study is also the last day a student can submit their Request for VET Student Loan form to defer their tuition fees through the VET Student Loans scheme.

It is a date the VET Provider sets which is no earlier than 20% of the way through the period in which the unit of study is undertaken.

Census days will apply to each of the VET units of study in which a person enrols, with the student taking out a loan for any tuition fees that remain unpaid at the end of each census day.

Tuition fees will be reasonably proportioned across 6 specific fee periods each with one census date. The census dates and fee periods can be found on our website under VET Student Loans.

A student may cancel their enrolment by:

1. withdrawing from each VET unit of study on or before the census day and
2. in accordance with our Student Withdrawal Procedures and Refund Policy for Approved Courses

Withdrawal on or before the census day will result in the student:

1. not incurring a VET Student Loan debt and/or
2. receiving a refund for any upfront tuition fee payments made on or before the census day.

Following the successful lodgement and assessment of a Request for VET Student Loan form, the Australian Government will pay directly to the VET Provider, some or all of the tuition fees associated with a student’s course. This loan is then repaid by the student via the tax system in compulsory and/or voluntary contributions. The loan may affect (by reducing) the persons take home (after tax wage) or salary until the debt is repaid and may affect borrowing capacity of the person until the debt is repaid to the Commonwealth.

Over their lifetime, a student will be able to borrow up to the amount of their FEE-HELP limit which is indexed annually by the Australian Government. Repayments do not reset the maximum that can be borrowed.

The FEE-HELP limit for 2021 is $108,232.00 for students not undertaking aviation courses.

VET Student Loans extends only to tuition fees. It does not cover accommodation and general living expenses.

Note: A loan fee of 25% applies to VET Student Loans. This fee is payable to the Australian Government and added to your loan. It is also not included in the FEE-HELP limit.

For example: BSB60720 Advanced Diploma of Program management, has a full VET Student Loan amount of $5,000.00. If the full amount is used the total debt payable to the Australian Government would be $6,250.00.

This fee is charged by the government and not paid to IH Sydney. Your HELP debt is also indexed every six months. Current and past indexation are available on the ATO website at www.ato.gov.au

Note: The total loan amount cannot be greater than a student’s remaining FEE-HELP balance

A student’s first loan repayment starts when their employment income exceeds the minimum threshold permitted for the specific financial year. For the 2020 – 2021 year, the VET Student Loans threshold level is $46.620.00.

A VET Student Loan can be used to help a student undertake an approved VET course and can be applied to a student’s VET tuition fees – provided their total FEE-HELP limit has not been exceeded.

Eligibility for VET Student Loans is not affected by previous qualifications or your study results.

Any debts to the Commonwealth arising from a VET Student Loan remains with the student until they have been repaid by the student and it is the student’s responsibility to ensure they have sufficient FEE HELP balance to cover the VET Student Loan assistance amounts indicated in the invoice notice.

Once you commence your course enrolment, and prior to your first census date for your course, you will receive a VET Student Loans Statement of Covered Fees which will provide details of the total course fee and how much will be covered by the loan amount.

Your course may cost more than the VET Student Loan Cap. If so, you will need to pay, or arrange to pay, the difference (referred to as a gap) between the course fees and the VET Student Loan Cap prior to your first census day.

In addition to the Statement of Covered Fees, you will receive a VET Student Loan Fee Notice at least 14 days before a census day that will show you the amount of tuition fees that will, and will not, be covered under a VET Student Loan for that particular fee period.

If you withdraw your enrolment on or before the census day, you will not incur the tuition fees for that fee period. This applies to fees covered by the VET Student Loan and any gap or upfront fees paid for that fee period.

Two days after the census day has passed you will be emailed a Commonwealth Assistance Notice (CAN) that provides you with further information about your debt.

If you believe your CAN is incorrect, you should contact IH Sydney immediately.