Introduction to Student Loans

Making the decision to go into higher education is not easy; aside from the academic aspects, such as where to study and which course to choose, there are many other things to consider. Moving away from home for the first time is a difficult experience for many, and it is worth taking some time to prepare yourself. Studying also represents a considerable financial commitment: one which many students find daunting.

In recent years the Australian government has introduced various funding options for prospective full and part-time students through its Higher Education Loan Program (HELP), which give students greater financial flexibility removing upfront cost barriers to tertiary education and training by providing income contingent loans, allowing them to concentrate on their academic futures, rather than worrying about their bank balance.

For undergraduates, there are several funding options available. The majority of undergraduates apply for FEE-HELP which assists eligible fee paying students pay all or part of their tuition fees or HECS-HELP, which is made up of both 'student' loan and 'student' discount. Student income support is also available through Centrelink to help offset maintainance and everyday living expenses, such as food, drink and travel whilst studying.

FEE‑HELP is a loan scheme that assists eligible fee paying students pay all or part of their tuition fees. It cannot be used for additional study costs such as accommodation or text books. The total amount of FEE‑HELP a person can use is known as the ‘FEE‑HELP limit’.

The HECS‑HELP scheme is both a student loan and a student discount. Eligible students may access a HECS‑HELP loan to pay their student contribution amounts, or receive a 10% discount (known as the HECS-HELP discount) on upfront payments of $500 or more.

SA‑HELP is a loan scheme that assists eligible students to pay for all or part of their student services and amenities fee. The student services and amenities fee is a fee that universities (and other approved higher education providers) can charge for student services and amenities of a non-academic nature, such as sporting and recreational activities, employment and career advice, child care, financial advice and food services. Students can choose to defer all or part of their fee for the relevant year.

OS‑HELP is a loan available to eligible students enrolled in a Commonwealth supported place who want to undertake some of their study overseas. OS‑HELP can be used for a range of expenses such as airfares, accommodation, and other travel or study expenses. Students may receive one loan per six-month study period and can access a total of two OS‑HELP loans over their lifetime.

VET FEE‑HELP is available to assist eligible students studying higher level vocational education and training (VET) qualifications to pay their tuition fees. Higher level VET qualifications are at the diploma level and above. For a trial period, VET FEE‑HELP will also be available for a limited number of certificate IV qualifications. VET FEE‑HELP can be used to pay all or part of an eligible student’s tuition fees, but cannot be used for additional study costs such as accommodation or text books.

Student loans are also available for postgraduate students, but there are alternative funding options on offer, such as research grants, scholarships and bursaries. These are available from higher education institutions as well as external organisations, including charities and trusts.

Student loans are an attractive means of financial support while doing a degree, since the interest rates charged are low and tend only to rise in line with inflation. Increasingly, private lending institutions are offering alternatives to the traditional student loan packages offered by the Australian Government. However, these tend to have higher rates of interest and less flexible repayment terms, and are often only available to students on vocational courses.