VET Student Loans (Consequential Amendments and Transitional Provisions) Act 2016 (100 of 2016)

Schedule 1   Consequential amendments

Part 1   Main amendments

Higher Education Support Act 2003

7   After section 137-18

Insert:

137-19 VET student loan debts

Incurring VET student loan debts

(1) A person incurs a debt to the Commonwealth if, under the VET Student Loans Act 2016, the Secretary:

(a) approves a *VET student loan for the person; and

(b) uses an amount (the loan amount ) covered by the VET student loan to pay tuition fees for the person for a course.

The debt is a VET student loan debt .

(2) The amount of the *VET student loan debt is:

(a) 120% of the loan amount; or

(b) if the rules made under the VET Students Loans Act 2016 specify a lesser percentage of the loan amount for the person - that lesser percentage of the loan amount.

Note: For specification by class, see subsection 13(3) of the Legislation Act 2003.

When VET student loan debts are incurred

(3) A *VET student loan debt is incurred on the day that the Secretary pays the loan amount.

Remission of VET student loan debts

(4) A person's *VET student loan debt in relation to a loan amount is taken to be remitted if the person's *FEE-HELP balance is re-credited under Part 6 of the VET Student Loans Act 2016 in relation to the loan amount.