Education Legislation Amendment (2020 Measures No. 1) Act 2020 (62 of 2020)

Schedule 2   Validation of certain loans and payments

2   Approvals and payments relating to VET student loans

Scope

(1) This item applies if:

(a) a payment was made by the Commonwealth to an approved course provider; and

(b) the payment was purportedly on account of an amount (the excess amount ) of a VET student loan for a course; and

(c) the payment was purportedly paid under the VET Student Loans Act 2016 to pay tuition fees for a student (a relevant student ) for the course; and

(d) the excess amount was greater than the amount of a loan that could be approved for the student because the excess amount would reduce the student's HELP balance to less than zero; and

(e) the census day for the course or a part of the course occurred during the period:

(i) starting on 1 January 2017; and

(ii) ending on 31 December 2019.

Recovery of overpayment

(2) To the extent that it has not already been repaid to the Commonwealth before the commencement of this item, the payment:

(a) is a debt due to the Commonwealth; and

(b) may be recovered by the Commonwealth in a court of competent jurisdiction.

Adjustment of payments and entitlements

(3) If the Secretary determines that this subitem applies to a relevant student in relation to an excess amount and a course:

(a) for the purposes of this item, the relevant student's HELP balance is taken, on the census day for the course or a part of the course, to have been increased by:

(i) an amount equal to the excess amount; or

(ii) if the Secretary determines another amount - that amount; and

(b) the Secretary is taken to have approved a loan amount for the student for the course equal to the excess amount or the determined amount (as the case may be); and

(c) the Secretary must pay an amount equal to the approved loan amount to the provider to pay the student's tuition fee for the course.

(4) The Secretary may, on behalf of the Commonwealth, set off the amount of a debt due to it by a provider under subitem (2) against an amount that is payable to the provider under paragraph (3)(c).

(5) The Consolidated Revenue Fund is appropriated for the purposes of payments under subitem (3).

Application of the VET Student Loans Act 2016

(6) Subitem (7) applies if:

(a) the Secretary makes a determination in relation to a relevant student under subitem (3); and

(b) the excess amount was paid to the provider on or after 1 July 2019.

(7) The VET Student Loans Act 2016 has effect, and is taken to always have had effect, as if the Secretary had:

(a) approved the loan for the student under section 7 of the VET Student Loans Act 2016; and

(b) used the loan to make the payment to the provider under section 19 of that Act;

and to have done so immediately after the census day for the course or a part of the course.

(8) Despite subsection 73A(2) of the VET Student Loans Act 2016, the Secretary must not re-credit the relevant student's HELP balance with an amount equal to the amount lent to the student under this item if, and to the extent that, the re-crediting would have the effect that the student's HELP balance would exceed the HELP loan limit for the student.

Application of the Higher Education Support Act 2003

(9) Subitem (10) applies if:

(a) the Secretary makes a determination in relation to a relevant student under subitem (3); and

(b) the excess amount was paid to the provider before 1 July 2019.

(10) The Higher Education Support Act 2003 has effect, and is taken to always have had effect, as if the Secretary had:

(a) approved the loan for the student under section 7 of the VET Student Loans Act 2016; and

(b) used the loan to make the payment to the provider under section 19 of that Act;

and to have done so immediately after the census day for the course or a part of the course.

(11) Despite subsection 128-25(2) of the Higher Education Support Act 2003, the Secretary must not re-credit the relevant student's HELP balance with an amount equal to the amount lent to the student under this item if, and to the extent that, the re-crediting would have the effect that the student's HELP balance would exceed the HELP loan limit for the student.

Delegation

(12) The Secretary may, in writing, delegate to an SES employee, or an acting SES employee, in the Department all or any of the powers of the Secretary under subitems (3) and (4).

(13) In exercising powers under the delegation, the delegate must comply with any directions of the Secretary.

Determination is not a legislative instrument

(14) A determination made under subitem (3) is not a legislative instrument.

Definitions

(15) Expressions used in this item that are also used in the VET Student Loans Act 2016 have the same meaning in this item as they have in that Act.