The Australian Government is committed to increasing productivity, addressing skills shortages and assisting with the cost of studying. One of the measures that achieves these goals is the availability of the VET FEE-HELP income contingent loan scheme.
VET FEE-HELP assists eligible students undertaking certain Vocational Education and Training (VET) courses of study (diploma, advanced diploma, graduate certificate and graduate diploma courses) with an approved VET provider, to pay for all or part of their tuition costs. Approved VET providers offering diploma or advanced diploma courses are required to have an approved credit transfer arrangement to a bachelor degree with a higher education provider. The only exception to this requirement is where a body corporate is registered in a Reform State and Territory or has its registration managed by the National Audit and Registration Agency and offers, in accordance with is Scope of Registration, a diploma or advanced diploma course in a Reform State or Territory.
VET FEE-HELP is an extension of FEE-HELP, part of the Higher Education Loan Program (HELP). In 2010, eligible students can borrow up to $85,062 (or $106, 328 for medicine, dentistry and veterinary science courses that lead to registration as practitioners in those fields) over their lifetime. A loan fee of 20% applies to all VET FEE-HELP loans except for those applicable for students identified as subsidised by a Reform State or Territory and enrolled in a diploma or advanced diploma VET unit of study from 1 July 2009. Victoria is currently the only Reform State/Territory for the purposes of VET FEE-HELP. The FEE–HELP limit does not include the loan fee. Students repay the loan to the Australian Government through the tax system once a student reaches the minimum income threshold level for repayment, which for 2009-10 is $43,150.