FEE-HELP vs HECS-HELP: What's the Difference?
HECS-HELP covers your student contribution in a Commonwealth-supported place; FEE-HELP covers full tuition fees. Here is exactly how the two HELP loans differ.
By Timothy Hirou GaschereauPublished 8 min read
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HECS-HELP and FEE-HELP sound like two different worlds, but they are branches of the same tree. Both are HELP loans, both sit in the same account, and both are repaid identically. The differences come down to who you are, what you are studying, and one small fee.
Here is the clean breakdown of who gets which, and why it matters.
🎯 The essential: HECS-HELP is for students in a Commonwealth-supported place (CSP), covering the student contribution the government has already subsidised. FEE-HELP is for full-fee-paying students, covering tuition fees, and is common for postgraduate coursework and private providers. Both go into the same HELP account, are indexed on 1 June, and are repaid the same way through the tax system. You usually do not choose: your enrolment type decides. The 2025 20% reduction and the $67,000 threshold apply to both. This is general information, not personal advice.
What HECS-HELP is
HECS-HELP is for students in a Commonwealth-supported place (CSP). In a CSP the government subsidises a big chunk of your course, and you pay the remaining student contribution amount. HECS-HELP lets you defer that student contribution into your HELP account instead of paying upfront. It is available at most Australian universities for undergraduate degrees and some postgrad programs, and no loan fee applies. Most domestic uni students are in a CSP without realising it.
What FEE-HELP is
FEE-HELP is for full-fee-paying students. It covers all or part of your tuition fees (not a student contribution, which is a CSP concept). It typically applies to full-fee postgraduate coursework (most postgrad degrees are full-fee), the less common full-fee undergraduate places, and students at private and non-university higher education providers approved to offer it.
On the loan fee: historically FEE-HELP for undergraduate full-fee places attracted a loan fee (a percentage added to the amount borrowed), while no loan fee applies to postgraduate or private-provider FEE-HELP in most current arrangements. This has changed over time, so always confirm the current rules on StudyAssist.
HECS-HELP vs FEE-HELP, side by side
| Feature | HECS-HELP | FEE-HELP |
|---|---|---|
| Who it is for | Students in a CSP | Full-fee-paying students |
| What it covers | Student contribution | Tuition fees |
| Typically applies at | Most unis, undergrad + some postgrad CSP | Postgrad, full-fee undergrad, private providers |
| Loan fee | None | May apply to some undergrad full-fee places |
| Counts to HELP loan limit | Yes | Yes |
| Indexation and repayment | Same for both | Same for both |
One combined HELP loan limit
Both loans count toward the same combined HELP loan limit, a single cumulative cap across all HELP types (HECS-HELP, FEE-HELP, VET Student Loans). As an indicative 2026 figure it is around $129,883 for most students and about $186,544 for medicine, dentistry, veterinary science, and eligible aviation courses. These are indexed each 1 January, so check the current figure on StudyAssist. Once you hit the limit you must pay fees upfront, but repaying your debt frees up capacity again, so it is not a permanent ceiling.
Indexation and repayment: identical
This is where the difference basically disappears. Both debts are indexed on 1 June each year, capped since 2024 at the lower of CPI or the Wage Price Index. Both are repaid the same way: once your income passes the threshold ($67,000 for 2025-26), compulsory repayments come out through the tax system, and you can make voluntary repayments any time via myGov.
Because they behave identically once the debt exists, everything in our guides on HECS indexation, how repayments work, and the 20% reduction applies equally to a FEE-HELP balance.
Worked example: two students, one system
Jess is in a CSP; Marcus is doing a full-fee MBA. Same HELP system, very different debt sizes:
The only meaningful difference is how they got there and the size of the debt, because full-fee courses cost far more than subsidised CSP contributions.
Do you get to choose?
In most cases, no. Your enrolment type decides: a CSP means HECS-HELP, a full-fee place means FEE-HELP. The real choices you have are whether to use the loan at all (you can always pay upfront), and, if a provider offers you either a CSP or a full-fee place in the same course, which to accept. In that situation the decision is not really about the loan type at all, it is about the underlying cost, and a CSP is almost always much cheaper thanks to the government subsidy.
Frequently asked questions
Is HECS-HELP the same as HECS?
+
HECS (Higher Education Contribution Scheme) was the old name, replaced by HECS-HELP in 2005. Most Australians still say 'HECS' to mean their student loan, but technically it is HECS-HELP, or just 'HELP debt'. For practical purposes they refer to the same thing.
Can I have both HECS-HELP and FEE-HELP at the same time?
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Yes. If you study in a Commonwealth-supported place for one qualification and then enrol as a full-fee student for another, you can accumulate both types of debt. They all count toward the same combined HELP loan limit, so keep an eye on your total balance.
Is FEE-HELP more expensive than HECS-HELP?
+
The debt is usually larger, but not because of a higher indexation rate (both use the same rate). FEE-HELP covers full tuition fees, which are typically much higher than the subsidised student contribution in a Commonwealth-supported place. A loan fee may also apply to some undergraduate full-fee places, so check StudyAssist for current rules.
Does the 20% HELP debt reduction apply to FEE-HELP as well?
+
Yes. The one-off 20% reduction applies to all eligible HELP loan balances, including both FEE-HELP and HECS-HELP, for debts outstanding as at 1 June 2025. It was applied automatically by the ATO.
What happens if I reach the HELP loan limit?
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Once you hit the combined HELP loan limit, you cannot access any HELP loans (HECS-HELP or FEE-HELP) until you repay enough to bring your balance below it, and you would need to pay fees upfront in the meantime. Repayments free up capacity, so it is not permanent.
Do both HECS-HELP and FEE-HELP show on my myGov account?
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Yes. All HELP debts, whatever the type, appear in your ATO account within myGov as a single combined balance, not separate line items for each loan type.
I am a permanent resident. Can I access HECS-HELP or FEE-HELP?
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HECS-HELP is generally available to Australian citizens and New Zealand citizens or permanent humanitarian visa holders who meet residency requirements, and FEE-HELP has similar rules. Most permanent residents other than humanitarian visa holders are not eligible, so check StudyAssist carefully before enrolling.
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Sources
- StudyAssist, HECS-HELP
- StudyAssist, FEE-HELP
- StudyAssist, HELP loan limit
- ATO, study and training support loans
General information only, not personal financial or education advice. Rules, limits, and thresholds change regularly. Verify current details at StudyAssist or the ATO before making decisions.
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General information only. This article is educational and does not constitute personal financial advice. It does not account for your circumstances. Consider your own situation and seek advice from a licensed adviser before acting. Read our full disclaimer.
Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
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