The Commonwealth Government offers a number of loans called HELP (Higher Education Loan Program). HELP loans are very different from loans available from commercial lenders. You do not require a deposit, an employment history, assets, income or guarantor.
There are three types of HELP loans:
- HECS-HELP which assists eligible Commonwealth supported students to defer their student contribution charge.
- FEE-HELP which is available to students in fee paying places who are Australian citizens or the holder of an Australian permanent humanitarian visa.
- OS-HELP which is available to undergraduate Commonwealth supported students wishing to study overseas who need help with general costs.
All HELP loans are repaid via the taxation system once your income reaches a certain level.
HECS-HELP
HECS-HELP provides eligible Commonwealth supported students with assistance in paying their student contribution charge. It provides a loan to cover their student contribution or a discount if they choose to make an up-front payment of at least $500 of their student contribution before the census date of the semester.
Not all Commonwealth supported students are eligible for HECS-HELP. New Zealand citizens and Australian permanent residents enrolled in a Commonwealth supported place are not eligible for HECS-HELP. They must pay their total student contribution charge by the census date and do not receive a discount.
Citizenship and residency requirements
To be eligible for HECS-HELP, a student must be:
- a Commonwealth supported student and
- an Australian citizen or the holder of an Australian permanent humanitarian visa.
The student must complete the following by the census date:
- a Request for Commonwealth support and HECS-HELP form and
- provide their Tax File Number.
HECS-HELP payment options are as follows:
- pay 90% of the student contribution charge by the census date and receive a 10% discount
- or defer the entire student contribution charge by taking up a HECS-HELP loan by the census date
- or make a partial payment of $500 or more and defer the balance by taking up a HECS-HELP loan (you will receive a 10% discount on any payment made by the census date).
For further information, please refer to the Commonwealth Government's 'Study Assist' website or contact a Student Centre.
NOTE: From 1 January 2012, the Australian Government has lowered the HECS-HELP discount, applied to up-front student contribution payments of $500 or more, from 20 per cent to 10 per cent. It has also lowered the HELP voluntary repayment bonus, applied to payments of $500 or more, from 10 per cent to 5 per cent.
FEE-HELP
FEE-HELP provides a loan to eligible fee-paying undergraduate or postgraduate students.
Eligible students may borrow up to the FEE-HELP limit to pay their tuition fees only. From 1 January 2012, the FEE-HELP limit is $89 706 for all courses except Medicine, Veterinary Science and Dentistry for which the FEE-HELP limit is $112.134.
In 2011, the FEE-HELP limit was $86 422 for all courses except Medicine, Veterinary Science and Dentistry for which the FEE-HELP limit was $108.029. The increased FEE-HELP limit applies to all eligible students regardless of when they commenced their studies.
Citizenship and residency requirements
To be eligible for FEE-HELP, a student must be:
- an Australian citizen or
- the holder of an Australian permanent humanitarian visa or
- the holder of an Australian permanent visa who is undertaking bridging study for overseas-trained professionals, and will be a resident in Australia for the duration of the study.
The student must complete the following by the census date:
- a Request for FEE-HELP assistance form and
- provide their Tax File Number.
A 25% loan fee applies to FEE-HELP loans taken out by undergraduate fee-paying students (there is no loan fee for postgraduate students or for students enrolled in an enabling program). This means that if you are an undergraduate student, and you borrow $10 000, you will owe the Commonwealth Government $12 500. The loan fee does not count towards the borrowing limit.
For further information, please refer to the Commonwealth Government's 'Study Assist' website or contact a Student Centre.
NOTE: From 1 January 2012, the Australian Government has lowered the HELP voluntary repayment bonus, applied to payments of $500 or more, from 10 per cent to 5 per cent.
OS-HELP
OS-HELP provides financial assistance to eligible undergraduate Commonwealth supported students who undertake part of their study overseas.
For further information on OS-HELP, please contact Griffith International.