House of Representatives

Explanatory Memorandum

Circulated By Authority of the Minister for Tertiary Education, Skills, Jobs and Workplace Relations

Schedule 1 - Amendments

Higher Education Support Act 2003

Item 1 - Paragraph 137-10(2)(a)

Item 1 increases the amount of the FEE-HELP debt which is incurred under paragraph 137-10(2)(a) from 120% to 125%.

Subsection 137-10(2) provides that the amount of a FEE-HELP debt is:

(a)

if the loan relates to FEE-HELP assistance for a unit of study that forms part of an undergraduate course of study - an amount equal to 120% of the loan; or

(b)

if, paragraph (a) does not apply - the amount of the loan.

This amendment will increase the FEE-HELP debt for those people to whom paragraph 137-10(2)(a) applies.

Item 2 - Application

Item 2 contains an application provision which provides that the increase in the FEE-HELP debts in Item 1 will apply to FEE-HELP debts incurred on or after 1 January 2011 in relation to units of study whose census dates are on or after 1 January 2011.