Got Unfair VET FEE-HELP Debt? Here's How You Can Get It Wiped (or Refunded)

Here’s what you need to know.

When enrolling in a Vocational Education and Training (VET) course, the cost of obtaining a qualification can be rather daunting, and difficult to pay upfront. That is why many students opt for financial assistance through the VET Student Loans scheme (formerly known as VET FEE-HELP), which covers the cost of your studies and is repaid over time.

However, not everyone is eligible for a VET Student Loan. You have to be an Australian citizen, or a permanent humanitarian visa holder who will be a resident down under for the duration of your studies. Furthermore, you’ll need to be undertaking a course at an approved provider and be paying full fees.

Usually, the loan will cover the full cost of your course, and you will start to pay it back in increments through the tax system, once you are earning above the compulsory repayment threshold. In 2020, the income threshold is $45,881, and your repayments will go up as your annual salary increases. You can also make voluntary repayments to reduce the balance of your debt at any time through the Australian Taxation Office (ATO).  

Evidently, this system is designed to help students out, and to make studying after school way more affordable. On the other hand, it’s essential to be aware of any issues effecting your VET Student Loan debt or repayments.

For instance, the ABC recently reported that some students have been left in debt due to inappropriate conduct by their providers, as well as their colleges closing before they could finish their course. Fortunately, if you incurred debts under the former VET FEE-HELP loan scheme that you shouldn’t have, there are ways to have it wiped.  

Here’s how you can do it.

Check whether you have debt.

First of all, you should make certain that you definitely have debt from your VET FEE-HELP loan. To do this, all you need to do is sign in to your myGov account and link your account to the ATO. From there, you can select the ATO service from your myGov Home tab and choose ATO. Once you’ve followed those steps, you should be able to see your debt information.

You can also check the loan amount by going to the myUniAssist website.

I have debt that I shouldn’t have. What do I do?

If it’s possible to approach your VET provider with your complaint, that is the first step to take. But if it’s not fully resolved, or your provider has closed down, you can lodge a complaint to to the VET Student Loans Ombudsman. They are a free, independent and impartial body who will investigate your complaints.

To make a complaint, you’ll need to know your Commonwealth Higher Education Student Support Number (CHESSN). Your provider should have those details, or you can contact the Department of Education and Training’s Student Enquiry line on 1800 020 108 to find out if your provider is no longer operating.

After you’ve figured out your CHESSN, you can fill out the online complaint form. Make sure you have all your details handy, including any enrolment or withdrawal letters, and any other correspondence from your provider that is relevant.

It’s important to note, however, that only VET FEE-HELP complaints will be considered. 

When will I be refunded?

After you’ve submitted your complaint, a delegate of the Department of Education and Training will decide what to do based on the Ombudsman’s recommendation. You should hear back from them within 90 days.

If it is decided that your debt should be wiped and you haven’t paid back any of your loan, you will not be issued a refund. But if you have paid off some of the loan and have no other tax debts owing, you will be given a refund for the amount you’ve paid off. This can take up to 90 days to appear in your myGov account.

Of course, receiving a refund does not take away from the emotional impact that not being able to complete your course, or having debt might cause. If you feel like you need some extra support, you can call Lifeline on 131 114 or Kids Helpline on 1800 551 800, or visit headspace to find helpful resources. 

Header Image: urbazon/E+ via Getty Images.