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Higher Education Loan Program (HELP)

What is the Higher Education Loan Program (HELP)?
How do students request a HELP loan?
HECS-HELP
FEE-HELP
OS-HELP
HELP Repayments

1. What is the Higher Education Loan Program (HELP)?

The Higher Education Loan Program (HELP) is a package of loans to help students pay their course fees and to help students undertake study overseas. It includes:

HECS-HELP for eligible Commonwealth supported students;
FEE-HELP for eligible fee paying students; and
OS-HELP for eligible Commonwealth supported students who want to study overseas.

HELP loans are very different from loans that are available from commercial lenders. Students don't require a deposit, an employment history, assets, income or a guarantor. All of these loans are income contingent. Students do not have to make repayments on their HELP loans unless their income is above a certain level.

Please Note: There are differences between each of the three HELP loans, which are described below.

2. How do students request a HELP loan?

When the University makes an offer of a place it will clearly indicate whether the student is eligible for a HECS-HELP or a FEE-HELP loan and how the student should go about requesting a loan. Students wishing to apply for an OS-HELP loan will need to contact the University directly.

3. HECS-HELP

What is HECS-HELP?

HECS-HELP is a loan that helps eligible Commonwealth supported students to pay their student contribution.

Student contributions will vary according to the course. Australian citizens and holders of a permanent humanitarian visa may pay some or all of their student contribution up front and/or they may access a HECS-HELP loan to cover some or all of their student contribution.

Students who are eligible for a HECS-HELP loan but choose to pay their student contribution up front are eligible to receive a 20 per cent discount on full up front payments or partial up front payments of $500 or more.

Who is eligible for a HECS-HELP loan?

Australian citizens and holders of a permanent humanitarian visa are eligible for a HECS-HELP loan if they are enrolled in a Commonwealth supported place.

Other permanent visas holders and New Zealand citizens are eligible for a Commonwealth supported place but they are not eligible for a HECS-HELP loan. These students must pay their student contribution up front and are not entitled to a discount.

4. FEE-HELP

What is FEE-HELP?

FEE-HELP is a loan that helps eligible fee paying students pay their tuition fees at eligible public and private higher education providers.

Tuition fees for fee paying students will vary according to the course. Australian citizens and holders of a permanent humanitarian visa may request a FEE-HELP loan to cover some or all of their tuition fees.

Who is eligible for a FEE-HELP loan?

Australian citizens and holders of a permanent humanitarian visa are eligible for FEE-HELP.

Which courses are eligible under FEE-HELP?

FEE-HELP is for fee paying students enrolled in an approved course of study. The following courses are eligible for FEE-HELP:

accredited undergraduate award programs;
accredited postgraduate award programs;
bridging courses for overseas trained professionals to enable them to meet the requirements for entry into their profession in Australia;
courses to enable eligible students to meet the requirements for entry into an award program; and
university level subjects through Open Learning Australia.

How much can students borrow under FEE-HELP?

Eligible students can borrow up to the limit of the tuition fee charged by their higher education provider. However, over their lifetime, students will only be able to borrow up to a maximum of $85,062 for 2010 (indexed each year on the 1st January). The limit does not include the loan fee or any indexation amounts incurred.

Please note: For a person undertaking a medicine, veterinary science or dentistry course the FEE-HELP limit is increased to $106,328 for 2010 (indexed each year on the 1st January).

5. OS-HELP

What is OS-HELP?

OS-HELP is a loan that helps eligible Commonwealth supported students undertake some of their study overseas. OS-HELP will provide up to $5,523 per six month study period for up to two study periods to help students with a range of expenses such as airfares and accommodation.

Who is eligible for an OS-HELP loan?

There are a number of criteria that a student must fulfil to be eligible for an OS-HELP loan. The main criteria are that the student:

be a Commonwealth supported student;
be an Australian citizen or the holder of a permanent humanitarian visa;
have undertaken at least one year of their course;
must have at least 0.5 EFTSL remaining of their degree requirements upon completion of overseas study; and
be selected by their higher education provider to receive an OS-HELP loan.

How do students apply for an OS-HELP loan?

Students wishing to apply for OS-HELP will need to contact the University directly.

Please direct all enquires to the Study Abroad Office line on 4221 5404 or via email studyabroad@uow.edu.au

6. HELP Repayments

When do students have to start repaying their HELP loans?

All HELP debts are reported by the education provider to the Australian Taxation Office using the student's Tax File Number. Consequently, repayments of HELP debts are administered by the Australian Taxation Office and not the University.

Students don't have to make any repayments on their HELP debts until their income reaches the minimum threshold, which will be $43,151 in the 2009/10 financial year.

Table 1 below shows the HELP repayment thresholds that will apply from 2009-10

Table 1 - HELP repayment thresholds that will apply from 2009-10

For HELP repayment income in the range	Percentage rate to be applied to HELP repayment income
Below $43,151	Nil
$43,151 - $48,066	4.0%
$48,067 - $52,980	4.5%
$52,981 - $55,764	5.0%
$55,765 - $59,943	5.5%
$59,944 - $64,919	6.0%
$64,920 - $68,336	6.5%
$68,337 - $75,203	7.0%
$75,204 - $80,136	7.5%
$80,137 and above	8.0%

Can students make additional repayments above those specified by the HELP repayment thresholds?

Yes. Loan repayments beyond what is required by the repayment thresholds are regarded as 'voluntary repayments'. People who make voluntary repayments of $500 or more on their HELP debt will receive a 10 per cent bonus on the amount paid. That is, if a voluntary repayment of $1,000 is made on a HELP debt, then the outstanding debt will actually be reduced by $1,100.