The Australian Government offers eligible university and vocational education students loans to help them pay for course fees. There are two types of loan:
HECS-HELP is the acronym given to the loan scheme provided to eligible
university students. This loan enables students to complete their studies without paying for their tuition up-front. It does not cover associated costs, such as text books and other equipment. Once students complete their studies, they repay the HECS-HELP loan as soon as they earn an income over the compulsory repayment threshold
. The debt is deducted from their pre-tax income by the Australian Taxation Office.
VET FEE-Help is the acronym given to the loan scheme provided to eligible
students studying vocational education and training courses at the diploma level and above. For a trial period, these loans are also available for a limited number of certificate IV
qualifications. VET FEE-HELP can be used to pay for tuition fees, but cannot be used to pay for additional expenses such as tools or text books. As with HECS-HELP the debt is repaid as soon as the student begins earning over a certain compulsory repayment threshold
The latest information on student loans and repayment thresholds can be accessed at Study Assist