Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A person incurs a debt to the Commonwealth if the Secretary:
(a) approves a VET student loan for the person; and
(b) uses a loan amount covered by the VET student loan to pay tuition fees for the person for a course.
The debt is a VETSL debt .
(2) The amount of the VETSL debt is:
(a) 120% of the loan amount; or
(b) if the rules specify a lesser percentage of the loan amount for the person--that lesser percentage of the loan amount.
Note: For specification by class, see subsection 13(3) of the Legislation Act 2003 .
(3) A VETSL debt is incurred on the day that the Secretary pays the loan amount.
(4) A person's VETSL debt, in relation to a loan amount used to pay tuition fees for the person for a course, is taken to be remitted if the person's HELP balance is re - credited under Division 2 or 3 of Part 6 in relation to the loan amount.