VET Student Loans (VSLs) in Australia are interest-free, but they are subject to indexation, meaning the debt grows annually with inflation, and a 20% loan fee (for full-fee students) is added to the debt, increasing the total repayment amount beyond the original tuition cost. Repayment begins when your income reaches a set threshold, managed through the Australian Taxation Office (ATO).
There is no interest charged on a VET Student Loans debt, however it is subject to indexation. The ATO will apply indexation to any unpaid debt that is older than 11 months on 1 June each year.
Your VET Student Loan debt is repaid via the Australian Tax Office once your income reaches the minimum threshold for compulsory repayment. The latest threshold level is available here.
A $30,000 student loan's monthly payment varies greatly but typically falls between $200 to over $350, depending on interest rates and repayment terms; for example, a 10-year federal plan at 5% interest is about $318/month, while a 20-year plan at 7% could be around $230, but much longer terms or higher rates (like 7% on a private loan) can push payments higher, around $348-$353, or even lower on income-driven plans.
Question #2: Are HECS-HELP and FEE-HELP the same as VET Student Loans? No, HECS-HELP and FEE-HELP are different from the VET Student Loans program. HECS-HELP is a loan for eligible Commonwealth supported students who are studying at public universities (and some approved private institutions of higher education).
Overall, the positives of getting a VET Student Loan are that anyone can add to their existing skill set or embark on a new and rewarding career without worrying how they will pay the full amount of upfront fees.
On a $70,000 HECS/HELP repayment income (HRI) in Australia for the 2025-2026 year, you'd pay $450 per year, a significant reduction from previous years, calculated as 15 cents for each dollar over the new $67,000 threshold ($70,000 - $67,000 = $3,000 x 0.15 = $450). This is part of recent changes (effective mid-2025) that lowered repayment rates and raised the starting threshold, meaning you pay less overall.
Only after you pay your federal student loans can the default be removed, but it will still take seven years from the time of repayment for those accounts to be removed. Keep in mind: Federal law limits how long most types of negative information can remain on your credit report.
At 6% interest on $10,000, you earn $600 in simple interest for one year, making your total $10,600; with compound interest, the amount grows faster, earning $1,050 in two years, totaling $11,050, as interest also earns interest. The exact amount depends on whether it's simple or compound interest and the time period.
A $100,000 student loan is a serious financial responsibility, but understanding repayment options helps make the process manageable. On average, repayment can take 10–25 years, depending on income, interest rates and repayment plans.
Need pet care, but can't afford the vet bills? With a loan from VetCare Finance, your pet can receive urgent veterinary care. With our fast, simple application process, we'll ensure your loan is approved in no time so you can go back to looking after your pet.
Europe offers some of the cheapest veterinary medicine programs, especially in Slovakia and Lithuania, making it an affordable option for international students.
Yes, the Australian government is implementing a one-off 20% reduction for most student loans, including HECS-HELP, applying to the debt balance as of June 1, 2025, and is currently being processed by the ATO, with most reductions completed by late 2025 or early 2026, and you don't need to do anything to receive it.
Yes, you can get 0% interest loans, primarily through specific programs like the No Interest Loans Scheme (NILS) for low-income individuals for essentials (appliances, car repairs, education). Additionally, some credit cards offer introductory 0% APR periods for purchases or balance transfers, while some retailers provide 0% financing on specific products (like electronics) if you qualify, often with good credit and fees.
You'll start repaying your VET Student Loan through the tax system once your income exceeds a certain threshold. This threshold is set by the government. Once you earn more than this, a part of your income will go towards repaying your loan. For the 2025-2026 financial year, this threshold is $67,000.
Based on data from the American Veterinary Medical Association (AVMA) and recent industry reports, the average veterinary student loan debt in 2024 – 2026 is:
Turning $10k into $100k in one year requires very high-risk, high-reward strategies like aggressive stock/crypto trading, flipping digital assets (websites/e-commerce), or launching successful online businesses (courses, dropshipping), as traditional investing yields far less; you'll likely need a combination of significant capital investment, rapid skill acquisition, strong market timing, and exceptional execution, accepting the high chance of significant loss.
You'll earn roughly $330 to $420+ per month on $100,000, depending on the interest rate (e.g., a 4% to 5% Annual Percentage Yield (APY)), with higher rates earning more, and the amount increasing slightly each month due to compound interest. For example, at a 4.2% APY, you'd get about $4,200 yearly ($350/month), while at 5%, it's $5,000 annually ($416.67/month), with actual earnings varying by bank, account type (savings, CD, bond), and compounding frequency.
A $20,000 loan over 5 years (60 months) results in monthly payments typically ranging from $390 to $460, depending heavily on the interest rate, with total costs (principal + interest) usually between $24,000 and $28,000, but this varies significantly with the Annual Percentage Rate (APR) and any fees. For example, at a lower rate like 7.5%, payments are around $401/month, while at a higher rate (e.g., 12.49%), they might be closer to $460/month.
Borrowers who are enrolled in IDR plans can have the remaining balances of their student loans cancelled after 20 or 25 years of repayments—and after 10 years of working in a government or nonprofit job through the Public Service Loan Forgiveness (PSLF) program.
Ignoring student loans can lead to serious consequences—wage garnishment, tax refund interception, lawsuits, and long-term credit damage. While student loans can be overwhelming, there are options to help manage your payments and avoid default.
There are some situations where paying off your student loan can save you money, but this is only usually the case for very high earners. Even then, these people could still benefit from saving this money for a rainy day.
How to avoid paying higher-rate tax
If your student loan interest rates are higher than 6%, you may want to put more money toward paying down the loans and avoiding the interest. If your student loans are less than 6%, that could be a good reason to put some extra cash toward retirement or investments.
If you choose to make a voluntary contribution towards your HECS-HELP debt through salary sacrificing, you can repay an amount without paying tax on it as earnings, but you may still have to pay FBT. Salary sacrificing does have benefits, but how much it will help you depends on your income and your debt level.