Important updates to VET FEE-HELP from 1 January 2017

Important updates to VET FEE-HELP from 1 January 2017

  • Published on Friday 7 October, 2016
  • 2 min. read

The Australian Government has just announced important changes to the VET FEE‑HELP system.

 

From 1 January 2017 VET FEE‑HELP will cease and VET Student Loans will commence.

 

These changes are being implemented to improve the VET FEE-HELP scheme and better protect students taking out a VET FEE-HELP loan.

 

The VET Student Loans program will provide sustainable and affordable opportunities for students to undertake higher level Vocational Education and Training (VET) courses. Assistance will only be available for courses that align with industry needs and provide students with the skills required by employers.

 

VET Student Loans will also protect students by banning the use of brokers and limiting third party training. Training providers will need to apply to be able to offer courses under VET Student Loans and will be prevented from accessing the program for courses they can’t deliver or have not been delivering with satisfactory results for students.

 

VET Student Loans – at a glance

 

Loan caps and repayments

  • Eligible students will be entitled to loans up to a capped amount.
  • Providers may charge above this cap for a course, and if so, students will be expected to pay the difference according to the training organisation’s requirements.
  • Students will be required to repay the loan when their income reaches the repayment threshold. The threshold can be found at www.studyassist.gov.au.

 

Eligible courses

  • Selected Diplomas, Advanced Diplomas, Graduate Certificates and Graduate Diplomas that are linked to industry needs and employment outcomes will be eligible for VET Student Loans.
  • A list of eligible courses will be published by the Government at www.education.gov.au/vetstudent-loans and will be updated annually.

 

Training providers

  • All private training providers will be required to apply to the Government to be able to deliver courses under VET Student Loans.
  • Training organisations will be prevented from accessing the program for courses they can’t deliver or have been delivering unsatisfactorily.

 

What happens to existing VET FEE-HELP loans?

 

Students currently receiving VET FEE-HELP assistance will not be automatically transferred to the new VET Student Loans program.

Find out more

For further information about the VET Student Loans program, visit: https://www.education.gov.au/vet-student-loans