Last week the government introduced legislation to set up another HELP income-contingent loan (ICL) to assist with education-related expenses. If the bill passes, SY-HELP will lend students up to $23,600, which will be paid to their university to support student work on business start-up ideas. SY-HELP would join HECS-HELP, FEE-HELP, OS-HELP and SA-HELP.

Higher education students on student income support are also eligible for the Student Start-up Loan, which is legislatively separate from HELP but repaid in the same way.

Higher education students who have also enrolled in vocational education may have income contingent debt from VET FEE-HELP, its replacement VET Student Loans, or Trade Support Loans. These loans also have the same repayment system as the higher education HELPs.

If the SY-HELP bill passes, a total eight education-related income contingent loan schemes will be in operation, six for higher education and two for vocational education.

Do we need an income contingent loan at all?

Before I get into the differences between loan schemes, the bigger question is whether an ICL is needed at all. I thought not for the recent inclusion of some microcredentials in FEE-HELP.

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