The loan is repaid through the Australian tax system when you reach the minimum income threshold for repayment. The minimum income threshold for repayment is set by the Australian Government each year and is published on Study Assist. Repayments continue until you have repaid your entire debt. It is important to note that your loan will remain a personal debt until it is repaid and it may reduce your take-home (after tax) wage and your borrowing capacity. You may wish to seek independent financial advice before applying.
A VET Student Loan is only for tuition fees and doesn’t cover additional costs such as textbooks, equipment, materials or travel/accommodation. VET Student Loans also attract an additional 20% Loan Fee.
The amount you can borrow for each qualification is determined by the Australian Government and indexed annually. The loan cap is set by the Australian Government and is the maximum amount you are able to loan for that qualification. The maximum loan cap amount must not exceed your remaining FEE-HELP balance. If there is a gap between the course cost and the loan cap – you will be required to pay this directly to Aviation Australia.
A full list of approved courses is provided in the VET Student Loans (Courses and Loan Caps) Determination 2016.
Before applying for a VET Student Loan, ensure you read & understand this information.
You must meet the below criteria (and provide documentation) to be eligible to apply for a VET Student Loan:
You must also meet the below criteria:
You can check if you’re eligible and calculate your loan using the MySkills Eligibility Tool and Loan Calculator
If you are considering applying for a VET Student Loan, it’s important to familiarise yourself with your rights and responsibilities:
Course fees will be reasonably apportioned over a minimum of three study periods. Each study period has one (1) census date – which is the due date that you are able to apply for a VET Student Loan for that study period (or pay tuition fees directly) and the due date for withdrawal of the study period without a loan for that study.
If you choose to withdraw from the study before the census date, you will not incur a loan debt, and any fees you have paid will be refunded in full. We must receive notification in writing of your withdrawal on or before the census date for that study period.
There may be additional fees and resources that will be required to complete certain courses. A sample of these fees is listed below – please note this is not an exhaustive list and a full list will be provided to you prior to enrolment into the course:
More information can be found in the Schedule of Fees for each course:
Enrolment is open to applicants who have successfully completed the course pre-requisite entry requirements. If you have not yet completed this, please contact us.
Submit your online enrolment application – you will be provided with an enrolment link after Step 1 has been successfully completed.
Once you have submitted your online enrolment application, there is a cooling off period of 3-business days.
NOTE: Applying for a course does not guarantee you a place in that course. Enrolling means that you are committing yourself to study and to paying the associated fees. Your place is only guaranteed once you have met all eligibility requirements.
Submit your VET Student Loan application – you will be provided with an enrolment link after Step 2 has been completed.
You will need supporting documentation, which includes:
Once you have submitted your online enrolment application, there is a cooling off period of 3-business days. During this time Aviation Australia will check your Loan eligibility.
You will be required to start re-paying the Loan once your income is above the compulsory repayment threshold. The Australian Tax Office will calculate this and include it on your income tax Notice of Assessment.
If you withdraw from a study period after the census date, you will incur the VET Student Loan debt for that study period.
If you are unable to successfully complete a study period and believe this is due to Special Circumstances, you may apply to have your VET Student Loan balance re-credited for the study period.
Special Circumstances are:
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 exemption applied to VET Student Loan amounts incurred on census days between 1 April 2020 to 30 September 2020. This exemption has now been extended to include VET Student Loan amounts incurred on census days between 1 October 2020 to 30 June 2021.
All VET Student Loan amounts incurred on census days between 1 April 2020 to 30 June 2021 will not incur the usual 20 per cent loan fee. Students will not need to do anything for the exemption to be applied. VET Student Loan debt records with the Australian Taxation Office will automatically reflect the loan fee exemption from early June 2020.