In some circumstances a student’s HELP balance will be recredited - for example, if they withdraw or defer before census day. In these cases, you will need to repay any amount that was paid to you for the student’s tuition fees.
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You must pay back the loan amount which:
- was used to pay tuition fees for the student’s course
- has now been recredited to the student’s HELP balance [part 39].
For example, you must repay a loan amount if a student’s HELP balance is recredited:
- for special circumstances [part 47]
- where you have engaged in unacceptable conduct [part 48.4]
- where you default in relation to a student [part 50.3] and there is no suitable replacement course.
Where a student’s HELP balance is recredited, you must pay to the Commonwealth an amount equal to any amount that was paid to you but was not payable - for example, where the payment has been erroneously made or made based on false information.
Your decision not to recredit a person’s HELP balance is a reviewable decision.
46.1 - Procedures for recredit of HELP balance
You must have procedures that explain to students how their HELP balances are recredited.
The procedures must explain:
- that a student’s HELP balance can be recredited
- that a student may apply to you to have their HELP balance recredited because of special circumstances
- that a student may apply to have their HELP balance recredited because:
- you engaged in unacceptable conduct in relation to the student’s application for the VET Student Loan
- you failed to comply with the Act or an instrument under the Act and the failure has adversely affected the student
- what special circumstances are
- that to get their HELP balance recredited for special circumstances they must apply to you within 12 months after the relevant census day or within an extension period set by you
- that the department may recredit a student’s HELP balance in relation to special circumstances if:
- the course provider is unable to act or is being wound up or has been dissolved
- the provider has failed to act, and the department is satisfied that the failure is unreasonable
- that to get their HELP balance recredited by the department they must apply within 5 years after the relevant census day or within an extension period set by the department
- the decisions review [part 47.1] processes that students can use, including relevant time limits
- that there is no charge for review of decisions [part 47.2], other than review by the Administrative Review Tribunal (ART) [part 47.4].
46.2 - Applying for recredit of HELP balance
An application for recredit of HELP balance must set out the grounds on which the applicant’s HELP balance is to be recredited.
The application must include the following to the extent that they are known to the applicant:
- details of the course to which the application relates
- details of the provider of that course
- the loan amount that is to be re-credited
- the applicant’s student identifier (if any), and
- any documents supporting the application.
When a student applies to the Secretary for recredit of their HELP balance on grounds of provider unacceptable conduct [part 48.4], the department will send you a notice in writing. The notice will describe the proposed decision and state the reasons why the department is considering making it.
The notice will invite you to make a written submission to the department (within 28 days) on why we should not make that decision. The department must consider this submission.
The department will give the student and you written notice of the decision and reasons for the decision.
Students who want more information should be referred to the VSL Student Manual.
46.3 - Recrediting by provider for special circumstances
A student may apply to you to have their HELP balance recredited in special circumstances [part 47].
The student’s application must set out the grounds on which they’re applying have their HELP balance recredited. It should include:
- details of the course to which the application relates
- details of the provider of that course
- the loan amount that is to be recredited
- the applicant’s student identifier (if any)
- any documents supporting the application.
You must recredit a student’s HELP balance if:
- the student applies to you in writing for the recredit, and
- they do this:
- within 12 months after the relevant census day or
- within a longer period if you’ve given them an extension, and
- you’re satisfied that special circumstances prevented, or will prevent, the student from completing the requirements of the course or the part of the course.
If you allowed the student to defer their studies, the 12-month application period starts from the end of the deferment period.
You should consider the student’s application and notify them of your decision and reasons in writing as soon as possible.
If you’re satisfied that there are special circumstances, you must recredit the student’s HELP balance with the same amount as the VET Student Loan used to pay the relevant tuition fees.
You have the discretion to refund any other payments the student made to you for the course, in line with your own policies. These policies should be accessible to the student. You can use the ‘special circumstances test’ in deciding whether to refund a student’s upfront payment.
46.4 - Recrediting on grounds of unacceptable provider conduct
Students can apply to the Secretary of the department [part 48.4] to have their HELP balance recredited on the grounds of:
- unacceptable conduct by the provider
- circumstances set out in subsection 71(3) and 71(4) of the Act
The student has 5 years from the relevant census day to do this. However, the department may extend this period.
46.5 - Reporting a decision to recredit a student’s HELP balance
If the department decides to recredit a student’s HELP balance, we will notify you of this. You must report this outcome by submitting a TCSI revisions file.
You must repay to the Commonwealth any amounts of the VET Student Loan you received from the Commonwealth on the student’s behalf. The repayment will occur through subsequent reconciliations, unless the department decides to issue a separate invoice.
46.6 - Recrediting by Secretary
The Secretary of the department may act in place of you and recredit a student’s HELP balance for special circumstances.
The Secretary may take this action if you cannot do so, are being wound up, have been dissolved or have unreasonably failed to act.
The Secretary may also recredit a student’s HELP balance if the student has been subject to unacceptable conduct [part 48.4].
The Secretary may recredit a student’s HELP balance if they are satisfied that:
- the student is not an eligible student [part 31]
- the student is not a genuine student [part 42]
- the student does not have a tax file number [part 30]
- the student does not have a unique student identifier.
The Secretary may recredit a student’s HELP balance if:
- you have failed to comply with the Act (including the Rules, other instruments made under the Act, the HESA and any instrument made under the HESA), and
- the failure has adversely affected the student.
The Secretary must recredit a student’s HELP balance if:
- the student has not completed the requirements for the course or the part of the course because you defaulted in relation to the student, and
- the VSL Tuition Protection Director is satisfied there is no suitable replacement course for the student.
The amount the Secretary recredits must equal the loan amount that has been used to pay tuition fees for the student for the relevant part of the course. This must take into account any submissions you make to the VSL Tuition Protection Director in relation to the amount to be recredited. You and the student will get written notice of the Secretary’s decision on the recredited amount.
Legislation: Act s 6, s 22, s 68, s 70–73, Rules s 89, s 149(2–4)