What is a VET Student Loan?
The VET Student Loan scheme is an Australian Government program that helps eligible students pay their tuition fees for approved vocational education and training courses. Instead of paying the full tuition fees upfront, the government leads you the amount, and you begin repaying the loan through the tax system once your income reaches the repayment threshold.
Am I eligible for a VET Student Loan?
To be eligible for a VET Student Loan, you must meet a number of requirements. You may qualify if:
- You are an Australian Citizen, a qualifying NEW Zealand Special Category VISA holder, or hold a permanent humanitarian VISA.
- You are enrolled in an approved VET Student Loan course with an approved provider.
- You have a valid Unique Student Identifier (USI).
- You meet academic suitability requirements, such as having completed Year 12 or an approved Language, Literacy and Numeracy (LLN) assessment.
- You have not exceeded your VET Student Loan cap.
- You are 18 years or older, or have parental or guardian consent if under 18.
- You have a Tax File Number (TFN), or have applied for one.
It is important to note, meeting these requirements does not guarantee a loan, but it means you can apply. The final decision is made by the Australian Government when your application is submitted.
How do I apply for a VET Student Loan?
Applying for a VET Student Loan invloves a few important steps.
- Enrol in an approved course First, you must apply and be accepted into a VET Student Loan approved course with an approved provider.
- Provider your eligibility documents You will need to supply proof of citizenship or residency, your USI, and TFN. You will also be required to complete a Language, Literacy and Numeracy (LLN) assessment.
- Receive your loan application invitation Once your enrolment is confirmed, your training provider will give you access to the electronic Commonwealth Assistance Form (eCAF) system.
- Complete the eCAF application online You will receive an email from the government with a link to complete your VET Student Loan application. It is VERY important to make sure all information is correct before submitting.
- Confirm your engagement and progression. Throughout your course, you will receive progression emails. You must confirm your continued engagement to keep your loan active.
How much can I borrow?
The amount you can borrow through a VET Student Loan depends on the loan cap set by the Australian Government for your specific course. Each approved course has a maximum loan amount, and you cannot borrow more than this cap.
Total lifetime loan limit There is a maximum total amount you can borrow across all VET Student Loans and HELP Loans
Loan Fees For VET Student Loans, a 20% loan fee is added to the amount borrowed.
You can find more information on course and total lifetime loan caps at the link below:
VET Student Loan Course CapsWhen do I repay my VET Student Loan?
Repayments only begin once your income reaches the minimum repayment threshold.
Here’s how it works:
You repay through the tax system Once you start earning above the thrershold, repayments are automatically deducted from your income by the Australian Taxation Office (ATO).
The repayment threshold changes each year
Repayments are calculated as a percentage of your income The more you earn, the higher the repayment rate.
You can make voluntary repayments at any time This can help reduce your balance faster, but it’s completely optional.
It is VERY important to let your employer know that you have a HELP loan. This will help prevent shock tax bills.
Current thresholds and repayment amounts can be found at the link provided below:
VET Student Loan ThresholdsTuition Assurance
In cases were a provider defaults, students who study with VET Student Loan providers such as The Redcliffe Aero Club are eligible for tuition protection under the Governments’ Tuition Protection Service (TPS).