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The VET Student Loans (VSL) program has been designed to:
- support eligible students to access higher level vocational education and training
- provide integrity and balance provider risk against performance outcomes to promote delivery, and access to, quality and affordable training for students
- meet industry needs and improve employment outcomes.
The VSL program has several requirements that support the program’s integrity, including:
- restrictions on which courses can be financed through VSL
- limits on the amount that can be borrowed for a particular qualification
- provider entry requirements and
- ongoing provider monitoring.
2.1 - Key features of the VSL program
Loan amounts are paid for approved courses only. [part 16]
A registered training organisation must be an approved provider [part 3] in order to access the VET Student Loans program.
They must pay an application fee [part 6] and, if approved, an annual charge [part 15].
Approved course providers may, under certain circumstances, request approval to deliver their courses, or part of their courses, through VSL or TEQSA approved third parties [part 13]. However, they may not use brokers.
There are loan caps [part 35] on all eligible courses - that is, there is a maximum amount students can borrow for a course through VSL.
Providers may charge a tuition fee [part 19] that is higher than the loan cap, but the students will need to pay the gap between the loan cap and the provider’s tuition fee [part 22].
Approved providers manage:
- the loan application process [part 27] on behalf of students as part of course enrolment. Loan amounts for course fees are paid directly to the provider [part 18].
- the progression and engagement requirement [part 41] that students must meet to keep receiving a VET Student Loan.
A VET Student Loans Ombudsman [part 49] investigates complaints about the VET Student Loans program.
There are tuition protection arrangements [part 50] in place to protect students against provider default.
Fee limits [part 11] are placed on providers as part of their condition of approval.
Providers must continue to meet the course provider requirements [part 57] after their approval.