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Most students will incur a loan fee with their VET Student Loan. The loan fee is 20% of the loan amount and is added to your VET Student Loan debt automatically. The loan fee doesn’t count towards your HELP loan limit (part 7).
For example, if your course costs $5,000 and you take a VET Student Loan for the full amount, the loan fee will be $1,000 (that is, 20% of $5,000). This means the total amount of your VET Student Loan will be $6,000. However, myHELPbalance will show a deficit of $5,000.
The loan fee is not included in your HELP balance (part 7) but is included in your VETSL debt on myGov. The amounts on your ATO account will list your VSL record and loan fee as separate amounts.
10.1 - Students subsidised by a state or territory government
If you’re subsidised by a state or territory government, there’s no loan fee for a diploma or advanced diploma course. If you’re not sure if you’re a state or territory subsidised student, ask your course provider.
You can check your Fee Notice (part 20) to find out what fees you’re being charged.
In addition to the loan fee, VET Student Loans are subject to annual indexation (part 12). Indexation is when your loan amount is adjusted to reflect the changes in the cost of living. When indexation is applied, your debt is likely to increase which means the amount you repay in total will be more than the original amount of the loan.