House of Representatives

Explanatory Memorandum

Circulated By Authority of the Minister for Education the Honourable Julia Gillard MP

OUTLINE

This Bill makes minor amendments to provide for administrative efficiencies in the operation of the FEE-HELP and VET FEE-HELP Assistance Schemes under the Higher Education Support Act 2003 .

FEE-HELP and VET FEE-HELP assistance is available to full fee-paying students studying in higher level education or training, and provides a loan for all or part of a student's tuition costs. This assistance is aimed at encouraging students to take up higher level skill qualifications by reducing the financial barriers associated with study.

This Bill makes amendments to streamline the application and assessment process for higher education and training organisations applying for approval to offer FEE-HELP and VET FEE-HELP assistance to students. The amendments will provide for administrative efficiencies resulting in faster approvals of higher education and VET providers, therefore giving students access to financial assistance sooner.

Specifically, the Bill amends the tuition assurance provisions in the Act, to remove the administrative requirement for higher education and training organisations to have tuition assurance arrangements in place at the date of their application for approval to offer FEE-HELP or VET FEE-HELP assistance to students. In addition, the bill provides for amendments to allow recommendations from approved national or state-based agencies to be used as part of the assessment and approval of training organisations to deliver VET FEE-HELP assistance. This will help to eliminate duplication between Commonwealth and State and Territory agencies, and reduce the cost and time taken to assess a training organisation's application.