The Australian Government provides financial assistance to eligible students through the Higher Education Loan Program (HELP), which includes HECS-HELP, FEE-HELP, OS-HELP, VET FEE-HELP, VET Student loans.
-HECS-HELP: The Higher Education Contribution Scheme (HECS-HELP) is a loan scheme for eligible students enrolled in Commonwealth supported places. A HECS-HELP loan will cover the student contribution amount. Students can repay this loan through the taxation system once their income reaches a certain threshold.
-FEE-HELP: The FEE-HELP scheme provides a loan to eligible fee-paying students enrolled at an eligible higher education provider or Open Universities Australia. This helps to pay all or part of their tuition fees. Similar to HECS-HELP, FEE-HELP loans are repaid through the taxation system once the recipient’s income reaches a certain threshold.
-VET Student Loans (VET): The VET Student Loans program assists eligible students enrolled in certain vocational education and training (VET) courses at the diploma level and above with the payment of their tuition fees. The VET Student Loans program replaced the VET FEE-HELP scheme.
-Student Start-up Loan (SSL): The Student Start-up Loan is a voluntary loan for eligible students receiving Youth Allowance, Austudy, or ABSTUDY Living Allowance. The loan helps with the costs of study tools and equipment. The loan is not paid automatically, and students need to apply for it.
-Trade Support Loan (TSL): The Trade Support Loan program offers loans to eligible apprentices. The loans provide up to $21,078 (as of my knowledge cut-off in 2021, this amount is adjusted annually to reflect changes in living costs) to help them with the costs of living and learning while undertaking an apprenticeship. The loan is repayable through the taxation system.
In terms of repayment, all these loans are incorporated into the one income contingent loan debt called the ‘HELP debt’. The amount a person needs to repay each income year is calculated as a percentage of their income. The repayment threshold is adjusted each year and for the 2023-2024 income year it starts at 1% of income once income exceeds $51,550 and it scales up to 10% of income for incomes over $151,201. The debt is indexed each year to maintain its real value by adjusting it in line with changes in the cost of living (as measured by the Consumer Price Index figure released in March each year).