Clarifying HECS vs FEE HELP & VET vs TERTIARY
Hopefully the following will help clarify how the various systems operate.
HECS:
Is the Higher Education Contribution Scheme and is used for undergraduate level studies at universities. The government subsidises costs for these courses however a student still incurrs a 'HECS debt' to be paid of through the tax system when earning a certain amount of income.
A student has the option to pay off their 'HECS debt' up front and receive a 20% 'discount' i.e. if you don't pay up front you will be charged 20% interest.
The value of any outstanding debt in also annualy indexed in line with inflation.
FEE HELP:
Is the interest free government loan scheme for post-graduate studies. A student may borrow a cumulative lifetime total amount of about $81K for higher education purposes.
Like HECS studets pay back the loan through the tax system and there is NO INTEREST CHARGED under this scheme although outstanding balances are indexed annually in line with inflation.
VET FEE HELP:
Is the program set up by government to encourage Australian students to take up careers in aviation through registered VOCATIONAL EDUCATION TRAINING providers. This has the same lifetime loan limit as for the tertiary FEE HELP system and is paid back under the same arrangements.
NOTE: An individual is not permitted to make use of the $81k for VET FEE HELP and another $81k under FEE HELP. It is a total lifetime limit irrespective of which scheme it may come from i.e. you are permitted to use $40k under VET FEE HELP and another $40k under FEE HELP.
So how does one tell the difference between VET programs and TERTIARY/HIGHER EDUCATION programs? The title of the program is your best guide.
VET programs have titles such as Certificate I, II, III or IV, Diploma or Advanced Diploma. Tertiary programs have titles such as Graduate Certificate, Graduate Diploma or Masters.
So........
VET FEE HELP can be accessed for aviation programs through approved institutions offering Certificate I, II, III, IV or Diploma and Advanced Diploma. This includes flight training costs.
FEE HELP can be accessed for tertiary higher education aviation programs but only for the academic components i.e. it does not contribute to flight training costs. Flight training costs however may be covered under cadetship schemes or other financing arrangements.
Beware that some tertiary insitutions do run technical training divisions under the VET banner, the program titles outlined above are the best guide to decipher if it is VET or tertiary and which loan scheme may apply.