Study & Training Loans: HELP, VSL, AASL Repayment Guide 2025

There are several government-funded student loans in Australia designed to help you pay for further education or training, including:

HELP Loan Overview

The Higher Education Loan Program (HELP) supports eligible students by covering their student contribution or tuition fees at a university or other higher education provider in Australia.

VET Student Loans (VSL) Scheme

The VET Student Loans (VSL) program helps eligible students cover tuition fees for approved higher-level vocational courses (diploma level and above) at registered training organisations.

Understanding SFSS

The Student Financial Supplement Scheme (SFSS) was a voluntary loan designed to assist tertiary students with living expenses while studying.

Although this scheme closed on 31 December 2003, existing SFSS debts are still being collected through the Australian tax system.

Student Start-Up and ABSTUDY SSL Loans

The Student Start-up Loan (SSL) and ABSTUDY Student Start-up Loan (ABSTUDY SSL) are voluntary loans available to eligible higher education students who receive:

• Youth Allowance
• Austudy
• ABSTUDY Living Allowance

These student loans provide extra financial support to help manage study-related costs.

Australian Apprenticeship Support Loan (AASL)

The Australian Apprenticeship Support Loan (AASL), previously known as the Trade Support Loan (TSL), offers eligible Australian apprentices financial assistance over a 4-year period.

In some cases, apprentices may continue receiving payments at the fourth-year rate beyond four years until their apprenticeship is completed or the lifetime loan limit is reached.

A 20% discount is applied to the amount borrowed (excluding indexation and repayments made) if the apprenticeship is successfully completed.

AASL loan payments are managed by the Apprentice Connect Australia Provider and the Department of Employment and Workplace Relations.

Indexation of Study and Training Loans

Each year on 1 June, indexation is applied to the unpaid portion of your study and training loan that has been outstanding for more than 11 months.

This annual indexation ensures your loan retains its real value by adjusting it in line with changes to either the Consumer Price Index (CPI) or Wage Price Index (WPI), depending on which is lower.

For the 2025 financial year, the indexation rate is 3.2%.

Repayment of Study and Training Loans

You must begin repaying your study and training loan through the Australian taxation system once your Repayment Income (RI) exceeds the annual minimum repayment threshold. This threshold is updated every financial year.

You can also make voluntary repayments at any time to reduce your student loan debt faster.

For the 2024–25 financial year, the minimum repayment threshold is $54,435. If your income exceeds this amount, a compulsory repayment starting at 1% of your RI will be included in your tax assessment. The repayment rate increases as your income increases.

2024 – 25 Repayment Thresholds and Rates:

 

Repayment Income (RI)	Repayment Rate
Below $54,435	Nil
$54,435 – $62,850	1.0%
$62,851 – $66,620	2.0%
$66,621 – $70,618	2.5%
$70,619 – $74,855	3.0%
$74,856 – $79,346	3.5%
$79,347 – $84,107	4.0%
$84,108 – $89,154	4.5%
$89,155 – $94,503	5.0%
$94,504 – $100,174	5.5%
$100,175 – $106,185	6.0%
$106,186 – $112,556	6.5%
$112,557 – $119,309	7.0%
$119,310 – $126,467	7.5%
$126,468 – $134,056	8.0%
$134,057 – $142,100	8.5%
$142,101 – $150,626	9.0%
$150,627 – $159,663	9.5%
$159,664 and above	10.0%

How Repayment Income (RI) Is Calculated?

Your Repayment Income (RI) is used to calculate your compulsory loan repayments. It is different from your taxable income and includes:

• Your taxable income for the year
• Your total net investment losses
• Reportable fringe benefit amounts shown on your income statement
• Reportable superannuation contributions
• Exempt foreign employment income for the current year

Understanding how your RI is calculated can help you manage your student loan repayments more effectively.

Study and Training Loan Repayments from 2026

The Australian Government has proposed changes to the student loan repayment system, starting 1 July 2025, subject to the passage of legislation.

• The minimum repayment threshold is set to increase from $54,435 (2024–25) to $67,000 (2025–26).
• Compulsory repayments will only apply to income above the new $67,000 threshold rather than total annual income.

Until this legislation passes, the following repayment rates still apply:

2025–26 Repayment Thresholds and Rates:

 

Repayment Income (RI)	Repayment Rate
Below $56,156	Nil
$56,156–$64,837	1.0%
$64,838–$68,726	2.0%
$68,727–$72,851	2.5%
$72,852–$77,222	3.0%
$77,223–$81,855	3.5%
$81,856–$86,766	4.0%
$86,767–$91,973	4.5%
$91,974–$97,491	5.0%
$97,492–$103,341	5.5%
$103,342–$109,542	6.0%
$109,543–$116,115	6.5%
$116,116–$123,081	7.0%
$123,082–$130,466	7.5%
$130,467–$138,294	8.0%
$138,295–$146,593	8.5%
$146,594–$155,388	9.0%
$155,389–$164,711	9.5%
$164,712 and above	10.0%

20% Reduction of Student Loan Debt

In November 2024, the Australian Government announced a one-off 20% reduction on HELP and student loan debts.

This reduction will apply to your outstanding loan balance as at 1 June 2025.

In some cases, this 20% reduction may result in a credit to your HELP account. If you do not have any outstanding tax or other debts to the Commonwealth, this credit may be refunded to you.

Tax Tips for Repaying Your Study and Training Loan

Keeping receipts and claiming eligible deductions can help lower your RI and reduce your compulsory repayment amount.

If you have more than one job, each employer withholds tax based only on what they pay you. If your combined income exceeds the threshold, you'll still need to repay your loan when lodging your tax return.

Need help? visit your nearest H&R Block office for support with student loans and tax.