VET Student Loans

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 a 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:

  • Diploma
  • Advanced Diploma
  • Graduate Certificate
  • Graduate Diploma

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 will advise the Commonwealth  Department of Education and training   you wish to access the VET Student Loan scheme.

You will receive an email from the Department with a username and password. You then create an online application. You must have your USI number and tax file number handy

Note all applications are signed electronically and the application will be treated as having been signed if the communication contains:

  • Student Identification Number
  • Student tax file number
  • An acknowledgement the student has read and understood the application
  • A confirmation by student of the accuracy of the information in the application.
  • If a student is under 18 you then print out the application form and have a parent sign, and provide this to the Academy.
  • If a student is under 18 but is independent, proof of independence, e.g. youth allowance receipt must be provided.
  • By signing and submitting the form the person accepts that the VET Provider will automatically use the VET Student Loan for those VET units of study on the invoice notice and subsequent invoice notices in relation to the units that contribute to the course unless the student advises the VET Provider in writing that he or she does not wish to use VET Student Loans as his or her method of paying their tuition fees or any unit of study

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:

  • Satisfy the entry criteria including academic suitability requirements;
  • Have not been offered an inducement to undertake the qualification of study;
  • Be a full fee-paying student;
  • Be an Australian Citizen or a holder of a Permanent Humanitarian sub-class visa usually resident in Australia;
  • Be a New Zealand citizen who:
    • Holds a special category visa
    • has usually been resident in Australia for at least 10 years and
    • First entered Australia as a minor under 18 years of age and
    • Has lived in Australia for 8 of the last 10 years and
    • Has lived in Australia for at least 18 months in the past 2 years.
  • Have a FEE-HELP balance greater than zero – that is, they have not exceeded their FEE-HELP limit;
  • Be enrolled in a unit of study that meets the course requirements;
  • Provided the Academy with all information and documents including USI number, Proof of citizenship, Academic suitability etc
  • Be undertaking the course Primarily at a campus in Australia.
  • Be enrolled in the unit of study on or before the census day for the unit and remain enrolled at the end of the census day;
  • Meet the Tax File Number (TFN) requirements;
  • Have completed, signed and lodged with Department of Education and Training a Request for a VET Student Loan. This must be at least 2 days after enrolment in a unit or units of study and 14 days before the scheduled census day.
  • You will also be required to advise the Secretary of Department of Education and Training you wish to continue to use the VET Student Loan scheme throughout the course.This is done by completing a Progression Form every  four months. You have 14 days to complete this form.

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 form 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. Our census dates are on the website under heading vet Student loans-  Schedule of Vet tuition fees

Tuition fees will be reasonably proportioned across four specific fee periods each one with a census date. The census dates and fee periods can be found on our website under Vet Student Loans.

A student may cancel their enrolment by

  1. withdrawing from each VET unit of study on or before the census day and
  2. In accordance with our Student Withdrawal Procedures and Refund Policy for Approved Course

Withdrawal on or before census date  will result in the student

  1. not incurring a VET Student Loans debt and/or
  2. receiving a refund for any upfront tuition fee payments made on or before the census day

To withdraw from a course or unit of study

1.   Complete the withdrawal form located with other documents on this website and email to olivia@aabt.com.au.

2.  Ensure management confirms receipt of Withdrawal email. Date of withdrawal is date email 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 $109,206.00 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 $16,221.00  is used the total debt would be $19,463.00.

For the SHB50216 Diploma of Salon Management if a full VET Student Loan of $10,813.00  is used the total debt would be $12,975.60

In addition to the loan fee, your loan is also indexed each year. It increases annually 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 $46,620.00

KEEPING TRACK OF YOUR LOAN

Once  your enrolment is finalised and prior to the first census date, 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 date, which shows the fees that are covered and not covered for that particular fee period. Two days after the census date, 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.

What else do I need to know about VET Student Loans?

  • A VET Student Loan can be used to help a student undertake an approved VET course and can be applied to a student’s VET tuition fees – provided their total HELP loan  limit has not been exceeded.
  • Eligibility for VET Student Loans is not affected by previous qualifications or your study results.
  • Any debts to the Commonwealth arising from a VET Student Loan remains with the student until they have been repaid by the student and it is the student’s responsibility to ensure they have sufficient HELP balance to cover the VET Student Loan assistance amounts indicated in the invoice notice.
  • Throughout the course you may be required to communicate your agreement to the Secretary to continue using Vet Student Loans to pay your tuition fees for your course. This will be  facilitated electronically and the Academy will advise you when this is required to be done.This is normally in March  June and October each year
  • All policies and procedures relating to Vet Student Loans, Withdrawal policies, Census dates and the latest Vet Student Loan booklet  are on our website under the heading Vet Student Loans on the right hand side.
  • Tuition Fees and payment options are  on the website under Courses – fees and charges
  • It is important for an enrolled student to notify the Academy of any change of address, phone number or email address immediately an event occurs by email to the Director olivia@aabt.com.au
  • The Department of Education will contact students to verify enrolment in courses.
  • A student may wish to seek independent financial advice prior to applying for a VET Student Loan.
  • Please Note: VET Student Loans will not be approved for students who do not meet eligibility requirements. A VET Student Loan gives rise to a HELP debt that continues to be a debt to the Commonwealth until it is repaid.

https://www.education.gov.au/vet-student-loans

 

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