What Are VET Student Loans?

VET, which stands for Vocational Training and Education, refers to the courses offered by technical or further education institutions, providing practical skills or knowledge in an industry or occupation. These courses can be costly; fortunately, there are many ways to fund them.

If you want to enrol in a VET course and government funding isn’t an option, consider a loan. We’ll tell you everything you need to know about VET student loans, so read on!

What this article covers:

What Is a VET Student Loan?

While there are several types of loans, student VET loans concern students undertaking a vocational training and education course who are looking for a way to cover the fees that come with it.

You can obtain a VET loan from your government or a private lender. The loan will help pay your course fees and fund associated VET course costs, including buying necessary educational materials.

vet student loans

How Does a VET Student Loan Work?

Once it is approved, the loan will be deposited into your checking account within 24 hours. Of course, you’ll need to pass the lender’s requirements and agree with their policies first.

Repayment

How you’ll repay your loan depends on the terms you’ve established with your lender. 

Private lenders accept weekly, fortnightly, or monthly repayments and allow for extended repayment periods—which is ideal for students. In addition, the money is directly debited from your bank account, and there’s no paperwork to worry about.

Interest and Fees

They also come with higher fees and interest rates on top of an establishment fee. So, make sure you’ll be able to pay them back before signing anything. Otherwise, contact your lender to discuss an alternative repayment plan if you can’t repay your loan.

Secured and Unsecured

You can also attach a personal asset, such as a vehicle, to secure your loan. The difference between unsecured and secured loans is that the latter allows lenders to loan you a large sum.

We don’t recommend securing your loan if it’s small, as VET courses are usually inexpensive. Instead, reserve it for critical emergencies like a funeral loan or a high-value investment like cosmetic surgery loan since you’ll risk losing your asset if you default on repayments.

vet student loan

Which Student VET Loan Is Best for You?

It depends on your course’s costs and your eligibility. Government assistance is ideal if your course is inexpensive, but turning to a private lender is an option if flexibility and a faster-processing time are critical. Here’s how they differ.

Government Loan

Government-obtained VET loans are only available for approved courses at the diploma level and above. In short, you can’t get them for a Certificate IV level course or below. 

Additionally, there’s a limit to how much you can borrow; it depends on the courses you’re undertaking. So, a government loan may not fully cover your tuition, and you’ll have to pay the difference.

Moreover, the Australian government doesn’t offer loans for the unemployed and has strict loan eligibility requirements and repayment conditions for VET students or students in higher education.

Student Loan

Student loans from a private lender are flexible and are processed faster than government-obtained loans.

They also offer higher loan amounts, making them ideal for students partaking in expensive courses or looking for a better repayment plan.

How to Apply for a VET Student Loan

Obtaining a VET student loan is easy. Contrary to government-obtained loans, VET loan eligibility requirements vary depending on the lender but are less strict overall.

The first step to obtaining a loan is assessing your situation. Calculate how much your tuition costs and consider any necessary educational materials cost (for example, you might need a laptop loan to buy one to study with). Then, figure out how long it’ll take you to repay the total amount. 

The next step is to apply on your lender finder of choice. There are several types, so consider which one suits your needs and situation. Then, connect with a lender willing to loan you the amount you need. 

vet loan

Private lenders offer loans of all types, from medical loans to travel loans, so they’re sure to have one for your VET student needs as long as you meet their eligibility conditions.

The process is fast, especially if you qualify and submit all the requirements immediately. Most lenders ask for the following information:

  • What you’ll need the money for (VET courses in this case)
  • Your personal information and contact details
  • Your recent banking history and banking transactions
  • Your current employment
  • Your checking account (where the money will be deposited)
  • 100-points of identification

Your eligibility depends on your income and the loan you’re applying for since you’ll be asked what you’ll use it for. Your credit score is also inconsequential, and most private lenders overlook it.

The Bottom Line

VET student loans can be a lifeline for students facing financial barriers to accessing education. 

Government eligibility criteria may be strict, but private lenders can help finance your desired course and offer flexible repayment options. However, carefully consider your ability to repay the loan. Make sure to negotiate an appropriate repayment plan to avoid falling into a vicious cycle of debt. Good luck with your studies!

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