FEE-HELP vs HECS-HELP: Which Loan Am I On?

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

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.

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. For 2026 the limit sits at $117,720 for most students, with a higher $169,012 ceiling for medicine, dentistry and veterinary science. 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 lowest threshold ($54,435 for FY 2026-27), the rate is applied to your entire repayment income 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:

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