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There may be changes to the VET Student Loans (Courses and Loan Caps) Determination 2016 over time. For example, courses might move to a higher loan cap band.
Students with existing VET Student Loans may want to increase their VET Student Loan up to the increased loan cap to reduce their gap fees. They don’t need to submit a new eCAF to do this. The existing eCAF is updated so that the student may access a higher amount if applicable.
If the student wishes to use the increased maximum loan amount to reduce the amount of gap payments they need to make, the provider issues them with a new Statement of Covered Fees. As always, the student’s Fee Notice should reflect the correct amount of VSL loan they are to be charged for a unit of study and any other tuition fees they are paying (not using a VET Student Loan). The provider must issue the new Statement of Covered Fees at least 14 days before the census day.
If a student wants to change their VET Student Loan amount (where an increased loan cap applies), you need to give them a new VET Student Loan Statement of Covered Fees [part 43.1]and VET Student Loan Fee Notice [part 43.2]. These documents help students to understand how much of their fees the VET Student Loan covers and how much they will need to pay upfront.
The increased loan cap applies to both new and continuing students. It applies for units with census days after the date the Determination comes into effect. It doesn’t apply to census days that occurred before that date.
You can’t increase course or unit fees for current students (unless you’ve applied to vary your tuition fees [part 24] and have been approved).
You must continue to reasonably divide tuition fees over the year and the course, reflecting the new course cap amount.
Example
Sam enrolled in an 18-month diploma in 2024. They had a $6,031 course cap. The tuition fee was $8,000. That meant they initially had a total $1,969 gap fee.
Loan amounts and gap fees were spread across 3 x 6-month fee periods and 3 census days. (This example uses the minimum 3 census days, but courses can have more.)
Sam had already passed the first census day and had been charged a proportionate amount.
The Determination was updated on 1 January. The course cap increased to $12,557. Sam had 2 remaining fee periods in 2025. They wanted to access more VSL to reduce their gap fees in 2025.
Sam didn’t need to complete a new eCAF to do this. They just told their provider they wanted to access more VSL, and the provider issued them with a new Statement of Covered Fees and updated eCAF. Sam’s Fee Notices will reflect the increased amount.
The provider had to:
- divide the tuition fees and loan amounts (to the higher cap) evenly over the remainder of the course for the remaining fee periods
- issue an updated Statement of Covered Fees (and subsequent VSL Fee Notices and Commonwealth Assistance Notice) showing the increased loan access.
In this example, Sam had no further gap fees to pay for the remainder of their course.