How Does VET Student Loans Work?

How Does VET Student Loans Work?

VET Student Loans allows eligible students to access a loan to pay part or all tuition fees for approved courses.

Students can either:

The loan is repaid through the Australian tax system. When students reach the minimum income threshold for repayment. There is a loan fee of 20% for full fee-paying students.

Loan Fee Exemption

On 12 April 2020 the Australian Government announced a six-month exemption of the 20 per cent loan fee for full fee paying VET Student Loan students.  This was in direct response to the COVID-19 pandemic.

This exemption applies for VET Student Loan amounts incurred on census days between 1 April 2020 to 30 September 2020. Students will not need to do anything for the exemption to be applied. VET Student Loan debt records with the Australian Taxation Office will also reflect the loan fee exemption as the system changes are implemented, subject to legislative amendments.

On 30 September 2020 the Australian Government announced an extension to the loan fee exemption through to 30 June 2021.