WHAT IS VET STUDENT LOANS?
VET Student Loans is a scheme provided by the Australian Government to enable eligible full-fee paying students the opportunity to apply for a loan. Such a loan is to aid in the payment of all or part of a student’s tuition fees for an approved VET course of study in which the student is enrolled unless the student cancels their request for a VET Student Loan with the VET provider on or before the census day for the units of study that make up the course. The loan will remain as a personal debt obligation until it is repaid to the Commonwealth. The signed Request for Commonwealth Assistance form applies to a loan for the entire VET course of study and is charged on a unit of study basis unless the student pays some of the tuition fees.
The loan is spread across the course with 4 census days one in each fee period. This scheme is an extension of the FEE-HELP scheme (currently applicable to higher education students) and extends to students studying one or more of the following courses:
HOW DO I ACCESS A VET STUDENT LOAN?
After you submit an enrolment application and satisfy the student entry requirements, the Australian Academy of Beauty Dermal and Laser Pty Ltd (the Academy) will advise the Commonwealth Department of Education you wish to access the VET Student Loan scheme.
You will receive an email from the Department with a username and password. You then complete an online VET Student Loan Electronic Commonwealth Assistance Form (eCAF). You must have your USI number and tax file number handy
The application is completed electronically and the application will be treated as having been signed if the communication contains:
The Academy will issue an invoice 14 days prior to the census day for each unit of study. You will also receive a VET Student Loan Fee Notice 14 days before course commencement.
On the day after the census day the student will incur a VET Student Loan debt for the units of study contained in the invoice notice if the student has not withdrawn from the VET unit of study on or prior to the census day indicated on the invoice notice or has paid upfront some or all the amounts due for the VET unit of study.
WHAT IS NEEDED TO BE ELIGIBLE FOR VET STUDENT LOANS ASSISTANCE?
To be eligible for VET Student Loans assistance, a student must:
WHAT IS THE CENSUS DAY?
The census day is the date by which an enrolment may be cancelled without incurring tuition fees for the course or a part of the course. The census day of a unit of study is also the last day a student can submit their Request for VET Student Loan Electronic Commonwealth Assistance Form (Ecaf) to defer their tuition fees through the VET Student Loans scheme. It is a date the VET Provider sets which is no earlier than 20% of the way through the period in which the unit of study is undertaken. Census days will apply to each of the VET units of study in which a person enrols, with the student taking out a loan for any tuition fees that remain unpaid at the end of each census day. The Academy’s fee periods and can be found in the Schedule of VET Tuition Fees relevant to your course and are on the Vet Student Loans page of the website.
A student may cancel their enrolment by withdrawing from each VET unit of study on or before the census day in accordance with the Academy’s Student Withdrawal Procedures and Refund Policy for Approved Courses
Withdrawal on or before census day will result in the student
To withdraw from a course or unit of study a student must:
1. Complete the withdrawal form available on this website on this website and email to firstname.lastname@example.org.
2. Ensure the Academy confirms receipt of your email. Date of withdrawal is the date your email with the form attached is received.
HOW DO VET STUDENT LOANS WORK?
Following the successful lodgement and assessment of a Request for VET Student Loan form, the Australian Government will pay directly to the VET Provider, some or all of the tuition fees associated with a student’s course. This loan is then repaid by the student via the tax system in compulsory and/or voluntary contributions. The loan may affect (by reducing) the persons take home (after tax wage) or salary until the debt is repaid, and may affect borrowing capacity of the person until the debt is repaid to the Commonwealth.
WHAT IS THE ENTITLEMENT UNDER THE VET STUDENT LOANS SCHEME?
Over their lifetime, a student will be able to borrow up to the amount of their HELP loan which is indexed annually by the Australian Government. Repayments do not reset the maximum that can be borrowed. Past indexation rates are available on the ATO website www.ato.gov.au.
The current HELP loan limit is $121,844 for most students.
WHAT DO VET STUDENT LOANS COVER?
A VET Student Loan covers only tuition fees. It does not cover accommodation and general living expenses. It is important to note that a loan fee of 20% applies to VET Student Loans. This fee is payable to the Australian Government and added to your loan. It is not paid to the Academy.It is also not included in the HELP loan limit.
For the SHB50121 Diploma of Beauty Therapy, if the full VET Student Loan amount of $18,097 .00 is used the total debt would be $21,716.40.
For the SHB50216 Diploma of Salon Management if a full VET Student Loan of $12,063.40 is used the total debt would be $14,475.60
In addition to the loan fee, your loan is also indexed each year. It increases annually on June 1st to maintain its real value, adjusting in line with changes in the cost of living ( as measured by the Consumer price Index figures released in March each year). Debts are not indexed until they are 11 months old. You can find current and past indexation rates on the Australian Taxation office website (https://www.ato.gov.au)
Note the total loan amount cannot be greater than a student’s remaining HELP balance
WHEN DO THE FIRST REPAYMENTS START?
A student’s first loan repayment starts when their employment income exceeds the minimum threshold permitted for the specific financial year. The current VET Student Loans threshold level is $51,550.00.
KEEPING TRACK OF YOUR LOAN
Once your enrolment is finalised and prior to the first census day, you will receive a VET Student Loan Statement of Covered Fees which provides total cost of the curse and what will be covered by the loan amount. In addition to the Statement of Covered Fees you will receive a VET student loan Fee Notice at least 14 days before a census day, which shows the fees that are covered and not covered for that particular fee period. Within 28 days after the census day, you will be emailed a Commonwealth Assistance Notice (CAN) that provides further information about your debt. If you believe your CAN is incorrect please contact the Academy immediately.