Higher Education Support Act 2003

Chapter 4 - Repayment of loans  

PART 4-1 - INDEBTEDNESS  

Division 137 - How do HELP debts arise?  

SECTION 137-19   VET student loan debts  

Incurring VET student loan debts

137-19(1)  


A person incurs a debt to the Commonwealth if, under the VET Student Loans Act 2016 , the Secretary:


(a) approves a *VET student loan for the person; and


(b) uses an amount (the loan amount ) covered by the VET student loan to pay tuition fees for the person for a course.

The debt is a VET student loan debt .

137-19(2)  


The amount of the *VET student loan debt is:


(a) 120% of the loan amount; or


(b) if the rules made under the VET Students Loans Act 2016 specify a lesser percentage of the loan amount for the person - that lesser percentage of the loan amount.

Note:

For specification by class, see subsection 13(3) of the Legislation Act 2003 .

When VET student loan debts are incurred

137-19(3)  


A *VET student loan debt is incurred on the day that the Secretary pays the loan amount. Remission of VET student loan debts

137-19(4)  


A person ' s *VET student loan debt in relation to a loan amount is taken to be remitted if the person ' s *FEE-HELP balance is re-credited under Part 6 of the VET Student Loans Act 2016 in relation to the loan amount.



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