23BAVETSL debt

23BA VETSL debt

(1) A person incurs a debt to the Commonwealth if the Secretary: (a) approves a VET student loan for the person; and (b) uses a loan amount covered by the VET student loan to pay tuition fees for the person for a course. The debt is a VETSL debt. (2) The amount of the VETSL debt is: (a) 120% of the loan amount; or (b) if the rules 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.

(3) A VETSL debt is incurred on the relevant day. (3A) For the purposes of subsection (3), the relevant day is: (a) unless paragraph (b) applies—the day the Secretary pays the loan amount; or (b) if subsection (3B) applies to the loan amount—1 June 2025. (3B) This subsection applies to a loan amount if: (a) the loan amount should have been paid on or before 1 June 2025 but was paid after 1 June 2025 as a result of an administrative error; or (b) the loan amount: (i) was paid during the period of 6 months beginning immediately after 1 June 2025; and (ii) was used to pay tuition fees for a course, or a part of a course, for which the census day was on or before 1 June 2025. (4) A person’s VETSL debt, in relation to a loan amount used to pay tuition fees for the person for a course, is taken to be remitted if the person’s HELP balance is re‑credited under Division 2 or 3 of Part 6 in relation to the loan amount.