If you want to study in Australia but worry about fees and money, a study loan can help you a lot. The Australian Government gives special study loans to help students pay their tuition fees now and repay later when they start earning a good income.
In this blog, we will understand “study loan Australia” in very easy language. We will talk about:
- What is a study loan in Australia
- Types of study loans (HELP loans)
- Who can get these loans
- How to apply
- How repayment works
- Examples and simple calculations
This guide is useful for both Australian students and international readers who want to understand how the loan system works in Australia.
What Is a Study Loan in Australia?
In Australia, when people say “study loan”, they usually mean a Government student loan under the HELP – Higher Education Loan Program.
These loans:
- Help you pay your tuition fees (and some other study costs).
- Are given by the Australian Government, not a private bank.
- Are repaid through the tax system when your income is above a certain level (called the repayment threshold).
- Do not need to be repaid while your income is below that threshold.
So, you do not need to pay fees immediately. You can focus on your studies and pay the money later when you are earning.
Types of Study Loans (HELP Loans) in Australia
There are different types of HELP loans. Each loan is designed for a specific purpose.
HECS-HELP
- For students in a Commonwealth Supported Place (CSP) at a public university or some private providers.
- It helps pay the student contribution amount (your share of tuition fees).
- You can choose to:
- Pay some part upfront and take a loan for the rest, or
- Take a loan for the full amount (if eligible).
- Pay some part upfront and take a loan for the rest, or
Example:
- You are doing a Bachelor of Arts at an Australian university.
- Your student contribution for the year is AUD 8,000.
- You do not have enough money to pay now.
- You apply for HECS-HELP and get a loan for the full AUD 8,000.
- The government pays the university now.
- You will repay the AUD 8,000 (plus indexation) later through the tax system when your income is higher.
FEE-HELP
- For students who are in full-fee paying places (not CSP).
- Often used in some private universities or courses where the government does not subsidise the fee.
- It covers tuition fees, but not things like accommodation, laptops, or transport.
There is a loan limit, which is the maximum amount you can borrow in your lifetime. This limit is shared across FEE-HELP, HECS-HELP (combined limit) and some other loans.
Simple Example:
- You join a private college for a business degree.
- The annual tuition fee is AUD 20,000.
- You are eligible for FEE-HELP and decide to borrow the full AUD 20,000.
- This amount is added to your HELP debt and you will repay it later.
SA-HELP (Student Amenities)
- This loan is for paying the Student Services and Amenities Fee (SSAF).
- Universities charge SSAF for things like student clubs, counsellors, sports, and other services.
- Instead of paying SSAF now, you can take SA-HELP and repay later with your other HELP debts.
Example:
- Your SSAF for the year is AUD 350.
- You use SA-HELP for this amount.
- AUD 350 is added to your HELP debt total.
OS-HELP (Overseas Study)
- This loan helps CSP students who want to study part of their course overseas.
- It can be used for:
- Flights
- Accommodation
- Insurance
- Other overseas study costs
- Flights
Example:
- You are a CSP student in Australia and you want to do one semester in Europe.
- You get OS-HELP loan of AUD 7,000 to cover travel and living costs.
- This amount is added to your HELP debt.
STARTUP-HELP
- For students doing a Startup Year course.
- It supports students who want to work on business or innovation ideas.
- The loan is for course fees during that startup year.
Who Is Eligible for Study Loans in Australia?
Eligibility can change slightly each year, but in general, you must:
- Be studying in an approved course at an approved provider.
- Be an Australian citizen, or in some cases a New Zealand Special Category Visa holder or permanent humanitarian visa holder (with conditions).
- Meet residency rules (for example, you need to study in Australia for some or all of the course).
- Submit your loan form by the census date (the last day you can withdraw from the unit without full fee liability).
Your education provider (university or college) will check your eligibility when you apply.
How to Apply for a Study Loan (HELP Loan)
Applying for a study loan in Australia is usually simple and done online.
Step 1: Get a Tax File Number (TFN)
- You must have a Tax File Number (TFN) to apply for a HELP loan.
- If you don’t have one, you need to apply through the Australian Taxation Office (ATO).
Step 2: Enrol in an Approved Course
- Choose your course and institution.
- Make sure it is HELP-approved.
Step 3: Fill the eCAF (Electronic Commonwealth Assistance Form)
- Your university or college will give you a link to an online form called eCAF.
- Fill it before the census date.
- Provide your TFN, personal details, and confirm that you want a HELP loan.
Step 4: Check Your Confirmation
- After submitting, you should receive confirmation from your provider.
- The government will then pay your tuition to the university, and the amount will be recorded as your HELP debt.
How Does Repayment Work?
One big advantage of a study loan in Australia is the income-based repayment.
When Do You Start Repaying?
- You do not repay while your income is below a certain level (repayment threshold).
- Each financial year, the government sets a minimum income for compulsory repayments.
- When your income is above that threshold, a percentage of your income is taken as repayment through the tax system.
(Exact thresholds and percentages change over time and are published by the Australian Government.)
How Is the Repayment Collected?
- Your employer withholds a higher amount of tax from your salary once you tell them you have a HELP debt.
- At the end of the financial year, your income is checked and your repayment is calculated.
- The repayment is then automatically paid towards your HELP debt.
You can also make voluntary repayments any time if you want to reduce your debt faster.
Indexation – How Does Your Debt Grow?
HELP debts are indexed each year. Indexation is not “interest” like a bank loan, but it adjusts the debt to match inflation, so that the real value of money is maintained.
- Indexation is applied on 1 June each year to the part of your debt that has been unpaid for at least 11 months.
- The rate of indexation can change each year depending on inflation.
Simple Indexation Example
Let’s say:
- Your HELP debt on 1 June 2025 is AUD 10,000.
- The indexation rate for that year is 5% (this is just an example).
Calculation:
- Indexation amount = 10,000 × 0.05 = AUD 500
- New debt = 10,000 + 500 = AUD 10,500
So even if you did not borrow more money, your debt becomes AUD 10,500 after indexation.
This is why many people try to make voluntary repayments when they can, to reduce the impact of indexation.
Example: How Repayment Might Look
Let’s look at a simple full example so you can understand clearly.
Situation
- You studied a degree and took:
- HECS-HELP: AUD 24,000 over 3 years
- SA-HELP: AUD 600 for SSAF
- HECS-HELP: AUD 24,000 over 3 years
- Your total HELP debt when you graduate = 24,000 + 600 = AUD 24,600
Now, after some years, you start working.
Year 1 Income Example
- Your yearly income is AUD 55,000.
- Suppose the repayment threshold for that year is AUD 50,000 (example only).
- Your income is above the threshold.
- Assume the repayment rate for your income level is 2%.
Calculation:
- Compulsory repayment = 55,000 × 2% = 55,000 × 0.02 = AUD 1,100
The tax system will take AUD 1,100 and pay it towards your HELP debt.
If indexation also applies, the government will first index your debt, then subtract your repayment.
20% Reduction of Student Loan Debt (Special Measures)
The Australian Government sometimes introduces policies to reduce student loan debt for certain groups, such as:
- Teachers working in remote areas
- Health professionals working in rural communities
- Other targeted programs announced by the government
Under such a measure, up to 20% of your HELP debt might be reduced if you meet all the eligibility rules.
Simple 20% Reduction Example
Let’s say you are eligible for a 20% reduction program.
- Your current HELP debt: AUD 30,000
- You qualify for a 20% reduction.
Calculation:
- Reduction amount = 30,000 × 20% = 30,000 × 0.20 = AUD 6,000
- New HELP debt = 30,000 − 6,000 = AUD 24,000
So your debt reduces by AUD 6,000.
These programs usually have special conditions, like working in certain areas or professions for a set number of years, so always check the latest government information.
Study Loan Australia vs Bank Education Loan in Australia
It is also useful to understand the difference between government HELP study loans and private bank loans.
Government HELP Study Loan
- Income-based repayments.
- No repayments needed below the income threshold.
- Debt is indexed, not charged with normal commercial interest.
- Long-term and flexible.
Private Bank Education Loan
- Given by a bank or private lender.
- Often requires fixed monthly repayments starting soon after taking the loan.
- Has interest rates (fixed or variable).
- May need a co-borrower or security (like property).
For most Australian citizens studying in approved courses, HELP loans are more affordable and safer than private loans. However, some students (especially international students) may still use private loans for living costs or for courses not covered by HELP.
Tips to Use Study Loan Wisely
Here are some simple tips for students and parents:
- Borrow only what you need
Just because you can borrow, does not mean you should borrow the maximum. Think about future repayments. - Understand your course fees clearly
Check how much each subject or year will cost. Use your university’s fee calculator. - Keep track of your HELP balance
You can log in to your myGov account linked with the ATO to see your current HELP debt. - Make voluntary repayments when possible
Even small extra payments can reduce the total amount of indexation over the years. - Plan your career and salary expectations
Higher future income can make repayment easier, so choose your course and career with some planning. - Stay updated with government rules
Repayment thresholds, indexation rates, and special schemes (like 20% reductions) can change. Check official government sites regularly.
Conclusion
A study loan in Australia is a powerful tool that helps students study now and pay later in a manageable way. Through the HELP system – including HECS-HELP, FEE-HELP, SA-HELP, OS-HELP, and STARTUP-HELP – the Australian Government supports students to complete higher education without immediate financial pressure.
You only start repaying when your income reaches the repayment threshold, and the repayments are collected through the tax system. With simple planning, understanding your fees, and using examples like the ones in this blog, you can make smart decisions about your study loan in Australia.
If you are thinking about taking a study loan, always:
- Read the latest information from official government websites.
- Talk to your university’s student finance office.
- Plan your future income and repayment strategy.
With the right knowledge, a study loan Australia can become an investment in your education, career, and future success.