A tuition fee for a course includes the maximum amount covered by a VET Student Loan and the remaining tuition cost not covered by the loan – the ‘gap fee’.
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As it’s part of the tuition fee, the gap fee can’t include fees for non-tuition services such as items and equipment that become the student’s physical property and are not consumed in the course (for example, maps, charts or textbooks). These are fees that are not covered by a VET Student Loan.
You can offer students a payment plan to help them pay a gap fee or pay all their tuition fees upfront. This will allow them to pay in instalments or defer the payment.
If you offer payment plans, consider whether their terms (for example, if loan fees apply or interest is charged) mean that you are engaging in ‘credit activity’ as defined in the National Consumer Credit Protection Act 2009 (NCCP Act). Credit activity includes activities relating to the provision of credit contracts and credit services (see section 6 of the NCCP Act).
If you are engaging in credit activity, generally you will need either an Australian credit licence or an authorisation from a credit licensee to engage in credit activities as their representative. You will need to have these requirements in place from the day you start offering the credit. If you unlawfully engage in credit activities, you may face strict penalties.
For more information, see the Australian Securities and Investments Commission website – Do you need a credit licence?
22.1 - Offering scholarships and bursaries
You can offer students bursaries, scholarships or other forms of tuition fee discounts or subsidies. However, the benefit you offer must not be reasonably likely to induce a prospective student to apply for a VET Student Loan for one of your courses.
Whether this is reasonably likely in any particular case will depend on a variety of factors - for example:
- how you market the benefit
- the information you provide to prospective students
- the eligibility criteria for access to the benefit
- the way you calculate the amount of the benefit.
We note there is inherent difficulty in complying with this requirement, as bursaries are clearly intended to cover the gap between provider tuition fees for a course and the maximum VET Student Loan amount for that course. However, we expect you to consider and manage these issues to ensure compliance with the Act. You should have information regarding how your scholarship and/or bursary complies. This must be available if requested by the department.
Legislation: Act s 61