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Understand Your Education Loan Options

HECS-HELP, FEE-HELP, student loans, and scholarships — everything Australian students need to know about funding their education.

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Loan Types Explained

🏛️ HECS-HELP

The government's income-contingent loan for Commonwealth-supported uni students. You don't repay until you earn above the threshold (~$54K).

HECS Guide →

💳 FEE-HELP

For full-fee domestic students at approved providers. Covers tuition up to the FEE-HELP limit (~$174K lifetime, more for medicine/dentistry).

🎯 Scholarships

Free money — no repayment. Thousands of scholarships available based on merit, equity, field of study, and more.

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Resources

Study Assist

The Australian Government's official resource for student loans, HECS-HELP, and repayment information.

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Coursera

Affordable online courses and degrees from top universities. Some Australian unis offer full degrees via Coursera.

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📚 Study Guides

Textbooks, exam prep, and study skills resources to get the most from your investment in education.

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Australian Education Loan Types Compared (2024–25)

FeatureHECS-HELPFEE-HELPVET Student LoansSA-HELPOS-HELP
What It CoversStudent contribution at CSP unisFull tuition at approved providersVET diplomas/advanced diplomasStudent services & amenities feeOverseas study expenses
Who's EligibleDomestic students in CSPDomestic students in full-fee placesDomestic VET students at approved RTOsAny HELP-eligible studentCSP students studying overseas
Lifetime LimitNo limit$174,998 (most); $220,208 (med/dent)$104,440 (2024)No separate limit$8,868 per 6-month period (2024)
Loan FeeNoneNone (abolished 2020)20% loan fee appliesNoneNone
RepaymentIncome-contingent via ATOIncome-contingent via ATOIncome-contingent via ATOIncome-contingent via ATOIncome-contingent via ATO
Repayment Threshold$54,435 (2024–25)$54,435 (2024–25)$54,435 (2024–25)$54,435 (2024–25)$54,435 (2024–25)
IndexationLower of CPI or WPILower of CPI or WPILower of CPI or WPILower of CPI or WPILower of CPI or WPI

Frequently Asked Questions

How does HECS-HELP work in Australia?

HECS-HELP (Higher Education Contribution Scheme — Higher Education Loan Program) is the Australian Government's income-contingent student loan scheme for domestic students at Commonwealth-supported university places. You don't pay upfront — the government pays your tuition and you repay through the tax system once your income exceeds the minimum repayment threshold. For 2024–25, repayment starts at $54,435 annual income at a rate of 1%, scaling up to 10% at incomes above $151,201. HECS debts are indexed annually on 1 June — from 2023 onwards, indexation is capped at the lower of CPI or the Wage Price Index (WPI), following the 2023 indexation controversy where CPI hit 7.1%.

What is the HECS-HELP repayment threshold for 2024–25?

The minimum HECS-HELP repayment threshold for the 2024–25 income year is $54,435. If your repayment income (taxable income + fringe benefits + net investment losses + reportable super) is below this, you pay nothing. Repayment rates start at 1% ($544/year) and increase progressively: $54,435–$62,850 = 1%, $62,851–$66,620 = 2%, $66,621–$70,618 = 2.5%… up to 10% for incomes above $151,201. These thresholds are adjusted each year by the ATO based on average weekly earnings.

What's the difference between HECS-HELP and FEE-HELP?

HECS-HELP covers Commonwealth Supported Places (CSP) at universities — the government subsidises your fees and you borrow the 'student contribution' portion. FEE-HELP covers full-fee courses at approved universities and some private providers — there's no government subsidy, so you borrow the full tuition. FEE-HELP has a lifetime limit ($174,998 for most courses in 2024, $220,208 for medicine/dentistry/vet). HECS-HELP has no lifetime limit. Both are repaid through the tax system on the same income-contingent basis. FEE-HELP used to include a 20% loan fee, but this was abolished in 2020.

Is HECS debt indexed with inflation?

Yes, but with a cap since 2023. HECS-HELP debt is indexed annually on 1 June. Since the Higher Education Support Amendment (Response to the Australian Universities Accord Interim Report) Act 2023, indexation is capped at the lower of CPI or the Wage Price Index (WPI). For 1 June 2024, indexation was 4.0% (WPI) instead of what would have been 4.7% (CPI). Before this change, the 1 June 2023 indexation of 7.1% (CPI) caused significant public backlash and prompted the reform. Voluntary repayments made before 1 June each year reduce the balance that gets indexed.

Can international students get HECS-HELP in Australia?

No. HECS-HELP is only available to Australian citizens and holders of permanent humanitarian visas studying in Commonwealth Supported Places at Australian universities. New Zealand citizens and permanent residents are not eligible for HECS-HELP (though some NZ citizens may access it under specific long-term residency provisions). International students pay full fees upfront or access their home country's loan schemes (e.g., UK students can use Student Finance England for approved Australian universities). Some Australian universities offer international student scholarships and payment plans as alternatives.

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