Ibrahim and Secretary, Department of Education Skills and Employment

This matter concerned an application by Mr Ibrahim to the Administrative Appeals Tribunal (AAT) seeking a re-crediting of his FEE-HELP debt. Mr Ibrahim had enrolled in an Associate Degree in Aviation at RMIT, applied for and received a FEE-HELP loan, and incurred a debt. He subsequently sought to have this debt removed, arguing that his circumstances meant he should not be liable for the loan. The Secretary, Department of Education, Skills and Employment was the respondent.

The Tribunal was required to determine whether Mr Ibrahim's circumstances constituted "special circumstances" under section 104-25(1) of the Higher Education Support Act 2003 (Cth), which would allow for the re-crediting of his FEE-HELP balance. Specifically, the Tribunal had to consider whether any such circumstances had their full impact on or after the census date, whether they were beyond Mr Ibrahim's control, and whether he had effectively withdrawn from the course before the census date.

The Tribunal acknowledged Mr Ibrahim's difficult personal and financial situation, including juggling shift work, family responsibilities, and the stress of his debt. It also expressed concern regarding RMIT's apparent lack of consultation and support concerning Mr Ibrahim's capacity to safely undertake the demanding aviation course, particularly given his existing commitments. However, the Tribunal found that Mr Ibrahim had not provided evidence demonstrating how his circumstances prevented him from completing the course requirements or made it unreasonable to expect him to do so. Crucially, the Tribunal held that the debt was incurred on 29 March 2019 when Mr Ibrahim applied for and was granted the FEE-HELP loan, which was then paid to RMIT. Therefore, the fact that he never undertook any flying lessons or actual study in the diploma after the census date was not a relevant consideration for the purpose of re-crediting the debt under the special circumstances provisions.

The Tribunal affirmed the decision of the RMIT University, acting on behalf of the Secretary, that Mr Ibrahim was not entitled to have his FEE-HELP balance re-credited. The Tribunal recommended that Mr Ibrahim explore options with the Australian Taxation Office for payment plans or deferrals, and as a last resort, consider applying to the Department of Finance for a waiver of the debt.