FAQs – VET Student Loans
What is an approved course?
To be an approved course your course must be:
- specified on the VET Student Loans (Courses and Loan Caps) Determination 2016
- lead to a qualification of diploma, advanced diploma, graduate certificate or graduate diploma in the Australian Qualifications Framework, and
- be provided by an approved course provider, and
- be delivered by an approved course provider or an entity registered with TEQSA or approved by the Department to deliver the course.
What is the approved Course list and what is a cap?
VET Student Loans are only available for approved courses at the diploma, advanced diploma, graduate certificate and graduate diploma level that are specified on the courses and loan caps determination. Click here for the list.
This course list will be reviewed and updated annually by the Australian Government.
The courses and loan caps determination specifies the courses for which VET Student Loans may be granted; sets the maximum loan amounts for those courses; and provides for the annual indexation of the maximum loan amounts.
Other than for specified exceptions, there will be three loan cap bands of $5,000, $10,000 and $15,000 which will apply irrespective of whether the course is being delivered face-to-face, online, or via mixed delivery modes. Courses in the aviation training package are a specified exception and are eligible for a loan of up to $75,000.
Approved course providers may charge tuition fees for courses in excess of the loan cap amount. Some providers may offer courses that cost more than what the cap amount has been set for a course. In these cases, students must fund the difference between the amount that the provider charges for a course and the amount being covered with the VET Student Loans.
Who is an approved course provider?
VET Student Loans providers have been approved by the Department of Education and Training to offer VET Student Loans to students studying an eligible course. An approved course provider list is available online here.
How much am I permitted to borrow with VET Student Loans?
Most approved courses are subject to one of three loan caps; $5,000, $10,000 and $15,000.
What is a gap fees?
Gap fee is the difference between the VET student loan amount and course cost. The student is responsible for paying to the provider.
When do I have to pay the gap fee and how do I pay?
The gap fee will be divided across each census period and payable to the provider on each census date. You can pay directly to the provider or utilise the payment option available through the provider.
What is a loan fee?
A loan fee of 20% applied to VET student loans for full fee paying students.
When do I have to start repay the VET student loan?
You have to start repaying your debt through the taxation system once your repayment income is above the compulsory repayment threshold, if you are still studying. The repayment threshold for the 2016-2017 income year is $54,869.
How much will my repayments be?
The amount you repay each year is a percentage of your income. The percentage increase as your income increase, so the more you earn, the higher the repayments will be.
Can I pay off my debt sooner?
Yes, you can make a voluntary repayment to the ATO at any time and for any amount. Voluntary repayments are in addition to the compulsory repayments made through your tax return.
How much can I borrow with VET student loans?
In your lifetime can you borrow up to $100,879.