YOUR GUIDE TO VET FEE-HELP

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1 1 YOUR GUIDE TO VET FEE-HELP Welcome to our guide to VET FEE-HELP. Here you will find answers to the most asked questions around VET FEE-HELP and also explanations of exactly how it works. If you have any questions at all surrounding the loan or the process, please do give us a call on and we ll be happy to chat to you about your particular circumstance. What are my options for paying my tuition fees? Here at Churchill Education, we offer two options for paying your tuition fees: 1. SELF-FUNDED PAYMENT If you decide to pay for your qualification without a VET FEE-HELP loan, we are happy to offer you the following options: Full payment up-front Cost of the qualification paid over a 12 month period in either monthly, or quarterly instalments. 2. Payment arranged with a Government loan through the VET FEE-HELP scheme More information about VET FEE-HELP can be found in the remainder of this brochure and also at the Study Assist website: You must meet the eligibility criteria to use this option. What exactly is VET FEE-HELP? VET FEE-HELP is a Commonwealth income contingency loan that assists eligible full-fee paying students to pay their tuition fees. What this means is that, as long as you meet the eligibility criteria (that we explain in detail below) you will be able to borrow the full amount of your course from the government and pay it back, out of your salary, in instalments that are aligned with how much you earn. It s designed to help you get qualified more quickly but also only ever have to pay what you can realistically afford out of your wages. VET FEE HELP can be used to pay for all or part of your tuition fees when studying or using Recognition of Prior Learning from a nationally recognised qualification at the level of: Diploma; Advanced Diploma; Graduate Diploma; Graduate Certificate.

2 What is an approved VET course of study? 2 A VET course of study is more commonly known as your qualification. To be an eligible VET course of study a qualification must: be at the level of Diploma, Advanced Diploma, Graduate Certificate or Graduate Diploma; be costed as full fee paying that is the cost of the program is not subsidised by the Queensland Government. What are the eligibility criteria for VET FEE-HELP? In order to meet the eligibility criteria for VET FEE-HELP, you must fall into ALL the following categories: are an Australian citizen; or permanent humanitarian visa holder who will be resident in Australia for the duration of your unit(s) of study; Have not exceeded the FEE-HELP limit. Meet course requirements as follows: are a full fee-paying / fee for service student studying a diploma, advanced diploma, graduate certificate or graduate diploma level course at an approved VET FEE-HELP provider; OR are a student subsidised by a state or territory government (other than the Australian Capital Territory) studying a diploma or advanced diploma course; AND are enrolled with an approved provider in an eligible unit of study by the census date for that unit. How does VET FEE-HELP work in practice? It s really very simple. Once you have had your application for VET FEE-HELP approved and have signed up for your chosen course of study, the Australian Government pays the amount of the loan directly to Churchill Education. What happens then is that you repay your loan through the Australian taxation system once you have hit the repayment threshold. A loan fee of 20% applies to VET FEE HELP debts. There is no application fee for VET FEE HELP and no interest charged on the VET FEE HELP debt. The accumulated debt is however indexed according to the Consumer Price Index (CPI) by the ATO on 1 June each year. Indexation of your VET FEE HELP debt, in line with the Consumer Price Index (CPI), occurs when your debt has existed for 11 months or more.

3 Where can I find out exactly what my tuition fees will be? Your tuition fees that are covered by a VET FEE-HELP Loan are detailed in the course schedule, which can be viewed at 3 A loan fee of 20% also applies. Is there a limit to the amount I can borrow under VET FEE-HELP? In short, yes. However, the limit is generous. The VET FEE-HELP limit is the maximum amount a person can borrow over their lifetime. A FEE HELP balance is impacted by loans accessed through both FEE HELP (Higher Education) and VET FEE-HELP. This limit excludes any loan fee (20%). The FEE HELP limit for 2015 is $97,728 (VET students) for all courses except for medicine, veterinary science, and dentistry, for which the FEE HELP limit is $122,162. As a student uses VET FEE HELP to pay their tuition fees, the amount they are able to borrow in the future is reduced. Once a student has borrowed their entire FEE HELP limit (their FEE HELP balance is zero), they may not access VET FEE HELP assistance for future study even if they have commenced repaying their loan. A FEE HELP balance is impacted by loans accessed through both FEE HELP (Higher Education) and VET FEE HELP. NB: Churchill Education only offers VET FEE HELP. Example: Fiona studies two units in her first semester and decides to use VET FEE HELP assistance. Fiona has a FEE HELP balance of $85,062. Tuition Fee = $1,500 x 2 = $3,000 VET FEE HELP debt = $3,000 + (3000 x 20%) = $3,600 FEE HELP balance = $85,062 $3,000 = $82,062 Fiona s remaining FEE HELP balance is $82,062

4 When will my VET FEE-HELP loan have to be repaid? The Australian Tax Office (ATO) will take compulsory repayments through the taxation system when your income reaches the minimum threshold for compulsory repayment ($54,126 for financial year). The table below shows the rate at which you will repay your VET FEE-HELP loan in 2015/16 4 Please note that repayments do not reset the maximum that can be borrowed, and once the FEE- HELP limit is reached, alternative payment methods must be used. Is there any incentive to voluntarily pay off my FEE-HELP loan early? Yes. A 5% bonus will be granted for any voluntary payments over $500 that is made direct to the ATO. Example: Fiona has a debt of $3,600 and she makes a voluntary repayment of $1,500. With the 5% bonus, the value of her repayment is: $1,500 x 1.05 = $1,575. Fiona s total debt is reduced to: $3,600 $1,575 = $2,025 Fiona s bonus amount is: $1,575 $1,500 = $75

5 What else do I need to know? 5 Before you consider taking up a VET FEE-HELP loan through Churchill Education, you should be aware and understand the following information regarding the VET FEE-HELP Loan Scheme: VET FEE-HELP assistance is a loan from the Commonwealth; the loan will remain as a personal debt obligation until it is repaid to the Commonwealth; the loan may affect (by reducing) the person s take-home (after-tax) wage or salary until the debt is repaid, and may affect the borrowing capacity of the person until the debt is repaid to the Commonwealth; the signed Request for Commonwealth Assistance form applies to a loan from the entire VET course of study, charged on a unit by unit bases, unless the student pays some of the tuition fees; census date(s) will apply to each of the VET units of study in which the person enrols, with the student taking out a loan for any tuition fees that remain unpaid at the end of each census date; a student may cancel their enrolment by: - withdrawing from each VET unit of study on or before the census date; and - in accordance with the provider s withdrawal policy; withdrawal will result in the student: - not incurring a VET FEE-HELP debt; and/or - receiving a refund for any up-front tuition fee payments made on or before the census date; a student may wish to seek independent financial advice prior to applying for a VET FEE- HELP Loan. This information should be read in conjunction with the VET FEE-HELP Information for 2015 booklet, and Want to study a VET Qualification? brochure, which can be found at:

6 6 Further Published Information The following information is available on our website: Published tuition fees and published census dates: Published withdrawal policy and procedures: Within the VET FEE-HELP Handbook: 2 Cliff Salisbury Court Samford Village QLD 4520 Ph: (07) Registered Training Organisation (National Provider No )