Guide
HECS-HELP vs FEE-HELP: the short answer
HECS-HELP and FEE-HELP are two different loans inside the same HELP family. The difference is what they pay for, not how you pay them back. HECS-HELP defers the student contribution for a Commonwealth supported place, where the government already subsidises part of the cost. FEE-HELP defers the tuition fee for a full-fee place, where it does not.
Once the loan exists, the distinction stops mattering. Both are indexed on 1 June, both are collected through the tax system, and both use the same repayment thresholds and rates. The ATO adds them into one accumulated debt and calculates a single compulsory repayment from your repayment income.
What HECS-HELP covers
HECS-HELP is for students in a Commonwealth supported place, usually an undergraduate degree at a public university. In a CSP the Commonwealth pays part of the course cost directly to the provider and you are liable for the rest, called the student contribution amount. HECS-HELP lets you defer that student contribution instead of paying it upfront at each census date.
Because a CSP is already subsidised, the amount you borrow under HECS-HELP is only the student contribution, not the full cost of teaching you.
What FEE-HELP covers
FEE-HELP is for fee-paying students, where no Commonwealth subsidy applies and you are liable for the full tuition fee. That typically means postgraduate coursework, study at a private higher education provider, and some undergraduate full-fee places.
Because there is no subsidy, a FEE-HELP loan generally covers a larger amount per unit than a HECS-HELP loan for comparable study. FEE-HELP is also subject to the HELP loan limit, and eligibility, current limits and any loan fee are set by the Department of Education rather than the ATO - check StudyAssist for the figures that apply to your course.
Do HECS-HELP and FEE-HELP repay differently?
No. This is the part most people are actually asking about, and the answer is that the repayment rules are identical. For 2026-27 both sit under the same schedule: nil up to $69,528, then 15 cents per dollar to $129,717, then $9,028 plus 17 cents per dollar to $186,050, and a flat 10% of total repayment income above that.
Your compulsory repayment is worked out from your repayment income, never from your balance or from which loan type you hold. Two people on the same income repay the same amount whether their debt is HECS-HELP, FEE-HELP or a mix of both. use the HECS-HELP calculator.
Indexation works the same way too. Both are indexed on 1 June each year, at the same rate, on the part of the balance that has been unpaid for more than 11 months.
Which one do I have?
Check myGov, linked to the ATO, under Loan accounts. The ATO lists each loan type separately even though it repays them as one figure, so a mixed HECS-HELP and FEE-HELP history shows as two lines with one combined balance.
If you studied an undergraduate degree at a public Australian university and never paid fees upfront, it is almost certainly HECS-HELP. If you did full-fee postgraduate study, or studied at a private provider, FEE-HELP is likelier. Neither changes what you repay this year.
FAQ
Q: What is the difference between HECS and FEE-HELP? A: HECS-HELP defers the student contribution in a Commonwealth supported place, where the government subsidises part of the cost. FEE-HELP defers the tuition fee in a full-fee place, where it does not. Repayment thresholds, rates and indexation are the same for both.
Q: Is FEE-HELP the same as HECS? A: No, they are separate loan types, but they are both HELP loans and they are repaid under identical rules. The difference is in eligibility and what the loan pays for, not in how much you repay.
Q: Do I repay FEE-HELP and HECS-HELP separately? A: No. The ATO combines all your HELP debts into one accumulated balance and calculates a single compulsory repayment, then allocates it across the loans in a set order.
Q: Is FEE-HELP interest free? A: There is no interest on FEE-HELP, the same as HECS-HELP. Both are indexed once a year on 1 June, which raises the balance in line with inflation rather than charging interest.