HECS-HELP and FEE-HELP are siblings. Both sit inside the Higher Education Loan Program (HELP), both are indexed annually rather than carrying interest, and both repay automatically through the tax system. But which one you sit on depends on the kind of place your university offers you, and the eligibility and cost rules differ enough to matter.
The headline difference
- HECS-HELP covers the student contribution amount for a Commonwealth Supported Place (CSP). The Commonwealth pays most of the tuition; you defer the smaller student contribution into a HECS-HELP loan.
- FEE-HELP covers the tuition fees for full-fee places at approved providers. There is no Commonwealth subsidy, the loan covers the full published tuition figure for that course at that institution.
In a typical undergraduate degree at a public university the place is usually a CSP, which means HECS-HELP. Full-fee places exist in non-university providers, in some postgraduate coursework programs, and for some bachelor-level programs in private institutions. Read your offer letter carefully, the place type is stated explicitly.
| Dimension | HECS-HELP | FEE-HELP |
|---|---|---|
| Place type | Commonwealth Supported (CSP) | Full-fee domestic |
| Who funds most tuition | Commonwealth subsidy covers the majority | No subsidy, full tuition deferred |
| Loan fee | None | 20% on most undergrad full-fee |
| Lifetime limit (2026) | $129,883 combined HELP ceiling ($186,544 medicine/dentistry/vet) | |
| Eligibility | Citizens + eligible NZ SCV + humanitarian visa | Citizens + permanent residents + humanitarian visa + eligible NZ SCV |
| Repayment schedule | Identical ATO schedule; merged into one HELP debt | |
| Indexation | Identical: lower of CPI or WPI on 1 June | |
Eligibility
HECS-HELP is restricted to Australian citizens, eligible long-term New Zealand Special Category Visa holders, and permanent humanitarian visa holders. Permanent residents are not eligible for HECS-HELP, even if they hold a CSP, they must pay the student contribution up front.
FEE-HELP opens to a broader pool: Australian citizens, permanent humanitarian visa holders, and permanent residents (the latter usually only for bridging or pathway coursework, not standard undergraduate degrees). New Zealand SCV holders meeting the long-term residence test are also eligible.
Lifetime limits
Both loans count toward the HELP loan limit, a single combined ceiling that applies across HECS-HELP, FEE-HELP, OS-HELP and VET Student Loans. The limit is indexed by CPI every 1 January; for 2026 it sits at $129,883 for most students, with a higher $186,544 ceiling for medicine, dentistry, veterinary science, and eligible aviation courses. Repayments (compulsory or voluntary) restore your available limit dollar-for-dollar, so the ceiling tracks your outstanding balance over a career.
The 20% FEE-HELP loan fee
The 20% loan fee is one of the strongest financial reasons to choose a public university CSP over a private undergraduate full-fee place where the academic programs are otherwise comparable. Over a four-year degree the loan fee can add $15,000+ in additional debt depending on the course cost.
Repayment treatment
Identical. Both HECS-HELP and FEE-HELP balances are merged at the ATO into a single "HELP debt" for compulsory repayment purposes. Once your repayment income crosses the threshold ($67,000 for FY 2025-26), the marginal rate is applied to the portion of your income within each band and the resulting amount reduces your combined HELP balance.
You cannot direct repayments to one loan or the other, the ATO clears the total balance. This means voluntary repayments do not "pay off the FEE-HELP first" or any similar prioritisation. From the ATO's accounting perspective they are a single debt.
Annual indexation
Identical. Both balances are indexed on 1 June by the lower of CPI or WPI for the year to 31 March (post-2024 dual-cap rule). See our indexation explainer for the calculation in detail.
How to know which one applies to your offer
Every offer of admission specifies the place type. Look for one of:
- "Commonwealth Supported Place" or "CSP" - you will use HECS-HELP for the student contribution.
- "Full-fee place" or "Domestic full-fee" - you will use FEE-HELP for the tuition.
- "International" - neither HELP loan applies; international students pay up front and may use sponsorship or scholarship instruments.
Practical decisions
For most domestic undergraduates the choice between FEE-HELP and HECS-HELP is not really a choice, it is determined by the place type your provider offers. The occasional borderline case is when you have offers from two institutions: a CSP at a university (HECS-HELP) and a full-fee place at a private provider (FEE-HELP with the 20% loan fee for undergraduate). All else equal, the CSP is cheaper because of the absent loan fee and the smaller student contribution.
Source: Department of Education HELP loan limit and FEE-HELP loan fee · 2026