Explanatory MemorandumCirculated By Authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations
The Bill will amend paragraph 137-10(2)(a) of the Higher Education Support Act 2003 to increase the FEE-HELP 'loan fee' from 20 per cent to 25 per cent, to commence from 1 January 2011.
Eligible fee paying students can use a FEE-HELP loan to pay the tuition fee for eligible units of study. When the unit of study is undertaken as part of an undergraduate course of study a loan fee applies. The loan fee is included as part of the FEE-HELP debt incurred for the unit of study. The Bill has the effect of increasing the FEE-HELP debt from 120 per cent to 125 per cent of the loan amount.
The amendment will give effect to a recommendation of the Review of Australian Higher Education, that the loan fee for FEE-HELP for fee paying undergraduate students be increased to 25 per cent.