OS-HELP Loan Information

OS-HELP POLICY

OS-HELP is a loan that assists eligible students, who are based in Australia, to undertake study overseas. Students may receive one loan per 6 month study period for one or two overseas study periods. These loans will help students with a range of expenses, such as airfares and accommodation. In 2009, the OS-HELP loan amount for the 6 month period must not exceed $5,410.

Who is eligible
Can the loan be used for less than six months study?
How to apply
Is a loan fee applied?
How are the loans repaid?
Is interest charged?

Who is eligible for an OS-HELP loan?

There are a number of criteria that a student must meet to be eligible for an OS-HELP loan.

The main criteria are that an applicant must be:

an Australian citizen or a holder of a permanent humanitarian visa;
a Commonwealth supported student enrolled in an undergraduate progam of study;
not have received OS-HELP on more than one other occasion, and
selected by their university to receive an OS-HELP loan.

Students may only receive an OS-HELP loan after completing the first year of the course of study (equivalent full-time) and must have half a year of study (equivalent full-time) remaining on their return to Australia. The overseas study undertaken must count as credit towards the program of study at the home university.

Students undertaking their whole program outside Australia are not eligible for OS-HELP.

More information about the eligibility requirements for OS-HELP is available from the Fees and Scholarships office or on the Going to Uni website.

Can a student receive an OS-HELP loan for overseas study shorter than six months?

Yes, OS-HELP is available for study periods of less than six months but students cannot receive an OS-HELP loan more than once for a given 6 month period. Students may only receive a maximum of two OS-HELP loans over their lifetime.

How do students apply for an OS-HELP loan?

Students apply to their university for an OS-HELP loan. The University will assess the student’s application against the eligibility criteria set by legislation and any other selection criteria that the university may set.

Is a loan fee applied to OS-HELP loans?

Yes. A 20% loan fee is applied to each OS-HELP loan when the OS-HELP loan is paid to the student. For example, if a student borrows $3,000, they will receive $3,000 but their recorded debt will be $3,600 (that is, 120% x $3,000).

Please note that your OS-HELP debt is taken to be incurred on the day that the OS-HELP loan amount is paid to you. You will be required to repay your OS-HELP debt 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 university. Your OS-HELP debt will not be remitted under any circumstances. Your OS-HELP debt is reported to the Tax Office and will become a part of your accumulated HELP debt.

How are OS-HELP debts repaid?

OS-HELP debts are added to a student’s accumulated HELP debt (which includes any HECS, HECS-HELP or FEE-HELP debts). HELP debts are repaid through the tax system when the person’s income exceeds the minimum repayment threshold, which will be $41,595 in the 2008-09 financial year. People can also make voluntary repayments on their debts directly to the Tax Office. Voluntary repayments of $500 or more will attract a 10% bonus.

Is any interest charged on OS-HELP debts?

HELP debts, which include OS-HELP debts, are indexed each year by movements in the Consumer Price Index (CPI) to maintain their real value, but are otherwise interest free.

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