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1. Definitions

Unless the contrary intention appears, terms used in this statement of terms and conditions have the same meaning as in the Higher Education Support Act 2003.

In this statement of terms and conditions, unless identified otherwise:

1.1 “EFTSL” means equivalent full-time student load as defined in section 73-10 of the Act;

1.2 “OS-HELP loan amount” means the amount indicated in part 1 of the form, which is determined by your provider in accordance with your provider’s OS‑HELP policy, the OS-HELP Guidelines and the Act;

1.3 “Tax Office” means the Australian Taxation Office;

1.4 “the Act” means the Higher Education Support Act 2003, unless indicated otherwise;

1.5 “the form” means the correctly and fully completed, signed and correctly lodged OS-HELP debt confirmation form;

1.6 “the six month period” means the six month period indicated in part 5 of the form;

1.7 “this Statement” means this OS-HELP statement of terms and conditions;

1.8 “you” means the person who receives an OS-HELP loan; and

1.9 “your provider” means the higher education provider that has selected you for receipt of an OS-HELP loan.

This Statement is based on provisions in the OS-HELP Guidelines, the Higher Education Support Act 2003 (the Act), the Higher Education Support (Transitional Provisions and Consequential Amendments) Act 2003 (the TCA Act) (all available at www.comlaw.gov.au). This Statement, the OS-HELP Guidelines, the Act and the TCA Act may be amended from time to time. If there is any inconsistency between the provisions of this Statement and the provisions of the OS-HELP Guidelines, the Act, or the TCA Act, the provisions of the Guidelines, the Act and/or the TCA Act will prevail.

2. Loan conditions

To receive an OS-HELP loan in relation to the six month period, you must:

2.1 be an Australian citizen or a holder of a permanent humanitarian visa;

2.2 have not received an OS-HELP loan on more than one other occasion;

2.3 be enrolled in an undergraduate course of study;

2.4 have already completed units of study to the value of one EFTSL in Australia that count towards the course of study referred to in section 2.3 and in relation to which you were either:

(a) a Commonwealth supported student; or

(b) a contributing student as defined under section 34 of the Higher Education Funding Act 1988; or

(c) an exempt student receiving a merit-based equity scholarship under section 35(7) of the Higher Education Funding Act 1988;

2.5 be enrolled in full-time study with an overseas higher education institution or the overseas campus of an Australian higher education provider, and be outside Australia while undertaking that study, which must commence on or after 1 January 2005;

2.6 have your study outside Australia count towards the course requirements for the course of study referred to in section 2.3;

2.7 have, on return from study overseas, units to the value of at least 0.5 EFTSL to complete the requirements of the course of study referred to in section 2.3;

2.8 meet the tax file number requirements, which are to either:

(a) notify your provider of your tax file number and for your provider to be satisfied that this number is a valid tax file number; or

(b) give to your provider a certificate from the Commissioner of Taxation stating that you have applied for a tax file number (and then notifying your provider of your tax file number within 21 days of it being issued);

2.9 complete and lodge an OS-HELP debt confirmation form with your provider;

2.10 have been selected by your provider for receipt of an OS-HELP loan in relation to the six month period; and

2.11 have not received any other OS-HELP loan for a period that overlaps or coincides with the six month period.

3. Loan amount

3.1 The OS-HELP loan amount is determined by your provider in accordance with your provider’s OS-HELP policy, the OS-HELP Guidelines and the Act.

3.2 In 2007, the OS-HELP loan amount for the six month period must not exceed $5,196.

4. Loan fee

4.1 OS-HELP loans attract a 20% loan fee. The OS-HELP debt incurred by you will be 120% of the OS-HELP loan amount that you receive. For example, if you receive an OS-HELP loan of $3,000, your OS-HELP debt will be $3,600.

5. Debt management

5.1 Your OS-HELP debt is taken to be incurred on the day that the OS-HELP loan amount is paid to you.

5.2 You will be required to repay your OS-HELP debt (see section 6) even if you do not complete your studies or, due to unforseen circumstances, you do not undertake or complete the overseas study that was approved by your provider. Your OS-HELP debt will not be remitted under any circumstances.

5.3 Your OS-HELP debt is reported to the Tax Office and will become a part of your accumulated HELP debt.

5.4 Your accumulated HELP debt will include any unpaid debts and loan fees that you may have incurred under the following schemes:

(a) Higher Education Contribution Scheme (HECS);

(b) Postgraduate Education Loan Scheme (PELS);

(d) Bridging for Overseas Trained Professionals Loan Scheme (BOTPLS);

(e) Higher Education Loan Programme, which includes HECS-HELP,
FEE-HELP, and OS-HELP.

5.5 That portion of your accumulated HELP debt that has remained unpaid for 11 months or more will be indexed annually on 1 June in line with changes in the cost of living (as measured by the Consumer Price Index).

5.6 Your accumulated HELP debt is reduced by any compulsory or voluntary repayments that you make (see section 6).

5.7 In June each year, the Tax Office will send you an Information Statement if there has been activity on your HELP account in the previous 15 months. Activity includes: a new debt has been added to your account, a notice of assessment has been issued, or a compulsory or voluntary repayment has been made. If there has been no activity on your account, other than the indexation adjustment, you may not receive a statement.

5.8 The Tax Office sends your Information Statement to the latest postal address shown on its records. You must notify the Tax Office if your postal address changes.

5.9 The Tax Office can tell you the balance of your HELP account, or provide you with a statement (see section 7).

6. Repayment of HELP loans

Compulsory repayments

6.1 If your HELP repayment income is above the minimum HELP repayment threshold for any particular income year, the Tax Office will calculate your compulsory repayment for that income year and include it on your notice of assessment.

6.2 Your HELP repayment income is made up of the following amounts obtained from your income tax return:

(a) your taxable income; plus

(b) any amount your taxable income was reduced by a net rental loss; plus

(d) any exempt foreign employment income amounts included in your tax return.

6.3 If you have a spouse or dependants and if, due to low family income, you are entitled to a reduction of the Medicare levy or you do not have to pay the Medicare levy, you will not have to make a compulsory repayment for that year.

6.4 Your compulsory repayment is a percentage of your HELP repayment income for the income year. The HELP repayment rates for income earned during the 2006–07 income year are:

HELP repayment

HELP repayment income in the range	Percentage rate applied to HELP repayment income
Below $38,149	Nil
$38,149 to $42,494	4%
$42,495 to $46,838	4.5%
$46,839 to $49,300	5%
$49,301 to $52,994	5.5%
$52,995 to $57,394	6%
$57,395 to $60,414	6.5%
$60,415 to $66,485	7%
$66,486 to $70,846	7.5%