What organisations can offer VET FEE-HELP?
Registered Training Organisations (RTOs) have to apply to seek approval as a VET provider before offering VET FEE-HELP assistance to their students. To apply, the following requirements will need to be met as a minimum:
- Be a body corporate whose principal purpose is to provide education;
- Be a Registered Training Organisation as listed on the National Training Information Service (NTIS);
- Be financially viable and likely to remain financially viable;
- can offer VET accredited Diploma and Advanced Diploma courses with credit transfer arrangements and/or VET accredited Graduate Certificate and Graduate Diploma courses;
- Is part of an approved tuition assurance scheme, a guarantee or an exemption; and
- Have administrative procedures and capacity to meet reporting requirements.
Further information about the application process can be found here.
RTOs seeking approval as a VET provider can apply here. 
What is a body corporate?
The term 'body corporate' is not defined in the Higher Education Support Act 2003. A definition can be found on the Australian Business Register website at: http://abr.gov.au/. DEEWR recommends that registered training organisations should seek legal advice regarding their body corporate status before lodging an application to be a VET provider.
Can higher education providers offer VET FEE-HELP to students?
No. Existing higher education providers approved to offer FEE-HELP will need to apply to be approved as a VET provider to offer VET FEE-HELP. An application process for higher education providers will apply. Approved higher education providers will not need to undergo a full financial viability assessment if they are already approved to offer FEE-HELP. Further information about the application process can be found here.
Can dual sector providers offer VET FEE-HELP to students?
No. Existing dual sector providers who offer both higher education and VET courses will need to apply to be approved as a VET provider to offer VET FEE-HELP. An application process for dual providers will apply. Dual providers will not need to undergo a full financial viability assessment if they are already approved to offer FEE-HELP.
Which students are entitled to VET FEE-HELP assistance?
A student is only entitled to VET FEE-HELP assistance if the student:
- is an Australian citizen or permanent humanitarian visa holder who will be resident in Australia for the duration of the unit of study in which they are seeking VET FEE-HELP assistance;
- is a full fee-paying student enrolled on or before the census date in an eligible unit of study through an approved VET provider and remains enrolled in the unit at the end of the census date;
- meets the tax file number requirements;
- has completed, signed and submitted a valid request for VET FEE-HELP assistance form for the unit or the course of which the unit forms a part, on or before the census date; and
- has not exceeded the FEE-HELP limit.
What is Credit Transfer for VET FEE-HELP?
Credit transfer is a formal arrangement between a VET provider and a higher education provider that recognises an equivalent learning outcome for a VET Diploma or Advanced Diploma course to a higher education qualification. Before seeking approval as a VET provider to offer VET FEE-HELP assistance to students, RTOs need to ensure that a least one formal credit transfer arrangement is in place for at least one of their VET Diploma and Advanced Diploma courses.
To find the list of higher education providers to enter into credit transfer arrangements with please refer to: Higher education providers at a glance
Credit transfer arrangements are not required for VET Graduate Certificate and Graduate Diploma courses.
How will credit transfer arrangements be assessed?
The Department will assess each credit transfer arrangement using the following credit levels as a guide:
- 50% credit for an advanced diploma when linked to a 3 year Bachelor degree;
- 37.5% credit for an advanced diploma when linked to a 4 year Bachelor degree;
- 33% credit for a diploma when linked to a 3 year Bachelor degree; and
- 25% credit for a diploma when linked to a 4 year Bachelor degree.
How have the credits levels been determined?
The suggested levels of credit transfer are the best practice benchmark levels that have been approved by the Australian Qualifications Framework Advisory Board and are listed in its ‘National Guidelines on Cross-Sector Qualifications Linkages’ at http://www.aqf.edu.au/cs.htm
What should each credit transfer arrangement contain?
Each credit transfer arrangement must be a written document endorsed by both parties that lists the VET award, the name of the higher education provider and the higher education award, the amount of credit and the expiry date (if any). A copy of each credit transfer arrangement must be provided to the Department for approval.
Approved credit transfer arrangements must be published and made publicly available.
How many credit transfer arrangements need to be in place before I lodge an application to become a VET provider?
When applying as a VET Provider, RTOs will need to demonstrate that they have at least one formal credit transfer arrangement in place with a least one of the VET Diploma or Advanced Diploma courses.
Demonstration of credit transfer arrangements for VET Graduate Certificate and Graduate Diploma courses are not required for VET FEE-HELP eligibility.
Do dual sector providers have to demonstrate formal credit transfer arrangements between their VET Diploma and Advanced Diploma courses and their higher education courses?
Yes. Existing dual sector providers who apply to be VET providers and offer both higher education and VET accredited courses will need to provide evidence that formal credit transfer arrangements are in place for their eligible VET students who apply for eligible VET accredited Diploma and Advanced Diploma courses.
What is a unit of study?
For VET FEE-HELP, a unit of study means a subject or unit that a student undertakes as part of a course of study where the student may access VET FEE-HELP to pay for all or part of their tuition fees. The study must be undertaken with an approved VET provider (a Registered Training Organisation (RTO) who can offer VET FEE-HELP assistance.
What is a course of study?
For VET FEE-HELP, a course of study is made up of a number of units that make up a VET accredited Diploma, Advanced Diploma, Graduate Certificate or Graduate Diploma course. VET accredited Diploma and Advanced Diploma courses must also have approved credit transfer arrangements in place with a higher education provider.
What is a unit of competency?
A unit of competency is a specification of industry knowledge and skill and the application of that knowledge and skill to the standard of performance expected in the workplace that is part of a nationally endorsed training package or an accredited course.
Units of competency may comprise a number of smaller elements of competency. Training packages specify the competencies and qualifications used to recognise and assess the skills and knowledge people need to perform effectively in the workplace.
A unit of study is therefore likely to contain a number of competencies. Under the VET FEE-HELP loan scheme, competencies and units of competencies have no meaning. It is only units of study that a VET provider can determine for a course of study and set tuition fees against each unit of study.
How does a VET provider determine units of study for their courses?
It is up to the VET provider to determine how it divides up its courses of study into units of study. It may decide that a particular course will consist of only one unit of study or it may consist of a number of units of study.
In deciding how to structure a course into units of study, potential VET providers should be aware that for VET FEE-HELP, students do not incur a liability (a VET FEE-HELP debt) for a unit of study until after the census date for that unit. This applies to all students whether they pay their tuition fees up-front or seek VET FEE-HELP assistance. A census date can be set no earlier than 20% of the way through a unit of study.
Potential VET providers should consider the administrative load and the financial risks of students withdrawing or dropping out of the unit/s before the census date and therefore not being liable to pay any tuition fees for those units.
This could happen if the VET Provider has only one or a small number of units versus having numerous units of study and therefore lots of census dates very close together. It is possible to ‘batch’ some units of study if the census dates are very close together with a ‘common’ census date, providing it is no earlier that 20% of the way through the ‘batch’ of units of study.
What is a census date?
A census date for a unit of study is the closing date for a student to apply for VET FEE-HELP assistance and the date a student incurs a VET FEE-HELP debt (the tuition fees) for the unit undertaken. The census date is set by the VET provider and can be no earlier than 20% of the way through a unit of study.
When can a student get access to VET FEE-HELP assistance?
An eligible student can apply for VET FEE-HELP assistance if the Registered Training Organisation has been formally approved as a VET Provider.
How do I apply for VET FEE-HELP?
VET FEE-HELP loans will only be available through approved VET providers. They will have the appropriate information and forms for students after they receive their approval.
How do I find out who are the approved VET Providers?
All formally approved VET providers will be listed on this website. It is expected that the first approved VET providers will become available later in 2008.
Are only full-time students able to apply for VET FEE-HELP?
No. Eligible full-time and part-time full fee-paying students will be able to apply for VET FEE-HELP.
Can I apply for VET FEE-HELP part-way through studying a VET course?
You can if the following conditions are met:
- your RTO is an approved VET provider for the course you are studying; and
- the census date of the unit of study has not passed.
Will there be publications about VET FEE-HELP?
Yes, there will be separate information, forms, guidelines and a student information booklet for VET FEE-HELP. These are currently being developed and will available during the second half of 2008.
How will VET FEE-HELP differ from FEE-HELP?
VET FEE-HELP assistance can only be offered from an approved VET provider for VET accredited Diploma, Advanced Diploma, Graduate Certificate and Graduate Diploma courses. FEE-HELP assistance can be offered from a higher education provider for an accredited higher education course. Irrespective of whether a student receives a loan under VET FEE-HELP or FEE-HELP, the same FEE-HELP loan limit applies.
What is the VET FEE-HELP loan limit?
Over a student’s lifetime, whether they receive a loan under VET FEE-HELP for VET studies or FEE-HELP for higher education studies, the same FEE-HELP loan limit applies. In 2008, the FEE-HELP loan limit is $81,600 for most courses and $102,000 for medicine, dentistry and veterinary science courses that lead to registration as practitioners in those fields. This amount is indexed each year. There is a 20% loan fee that applies for all VET courses. The VET FEE-HELP loan limit does not include the loan fee.
Eligible students who are approved to receive VET FEE-HELP assistance to help pay for all or part of their tuition fees will effectively have a loan with the Australian Government.
The Australian Government pays the VET provider, on behalf of the student, the debt the student has incurred for tuition fees for each unit of study the student is enrolled at the time the census date is reached.
Students repay their VET FEE-HELP debt to the Australian Government through the tax system once they reach the minimum income threshold level for repayment, which for 2008-09 is $41,595.