The new VET loan scheme to exclude shonky providers?

The new VET loan scheme to exclude shonky providers?

The new VET loan scheme to exclude shonky providers?

From 1 January 2017 VET FEE‑HELP will cease and VET Student Loans will commence. 

Tougher restrictions on eligible private college courses, loan caps and student engagement requirements are among the changes due to come into force in 2017. The new scheme will have a maximum $15,000 cap on loans, which is less than the typical price for, say, a diploma of nursing. The existing VET FEE-HELP scheme has no loan caps. Under the new system, courses will be sorted into bands with fees covered by the government capped at $5000, $10,000 or $15,000 depending on delivery costs. 

Public VET providers, including TAFEs, will automatically be able to offer the revamped commonwealth loans but all private providers will have to reapply to be eligible.

The government’s plans also include bans on using recruitment brokers or cold-calling potential students; requirements for students to log in to an online student loans portal to ensure they are active and legitimate and a much higher bar for providers that want to offer government loans, including examining their relationships with industry.

Senator Birmingham wants the new system of VET student loans in place by the start of next year.

If legislation passes the Senate, the new VET Student Loans program will start on January 1. The 144,000 students with existing VET FEE-HELP loans will be grandfathered to the end of 2017.

A compulsory review will be held after 12 months of the new scheme with the minister able to change the loan caps at any time during the first year. 

Do you have any questions regarding VET FEE‑HELP? Contact one of our consultants at 1800 266 160  to assist you with meeting your compliance and quality assurance requirements.

Tags: ASQA, CAQA, CAREER CALLING, VET, VET FEE-HELP
Back to blog

Sukh Sandhu

Executive Director

Sukh has been working in the VET and Higher Education Industry for over 25 years. In this time, he has held several roles with RTO's and Higher Education Providers (HEP) including CEO roles for International Colleges and National Compliance and Quality Assurance Manager roles for several RTO's, TAFE's and Universities. Sukh has also worked for the Australian Skills Quality Authority (ASQA) as a Business Systems Project Official. Sukh is a Canadian permanent resident and Australian citizen.

Sukh has had extensive project management experience in risk management, compliance, administration and as a training consultant. He has extensive knowledge in government compliance standards and has participated in nearly one hundred audits across Australia and provided consultancy advice regarding ASQA/VRQA, TEQSA, ACPET, DET-HESG, VQF/Higher Education, ELICOS, NEAS, ANMAC, AHPRA, CRICOS, ESOS and ISO.

Sukh is a member of several independent professional organisations and government bodies including, ACPET, VELG, ACS, AITD, MARA, MIA, ISANA, APEX, IEEE, The Internet Society (Global Member), AISIP, IAMOT, ACM, OISV, APACALL, IWA, Eta Kappa Nu, EDSIG and several others.

Sukh's qualifications include two MBAs, three masters in IT and systems, a Graduate diploma of management learning, Diploma in training design and development, Diploma in vocational education training, Diploma of work, health and safety, Diploma of Quality Auditing, Advanced diploma of management, Advanced diploma in marketing, human resources, information technology, and a number of other courses and qualifications. He has been working as a lecturer and as a trainer and assessor since 1998, Sukh has been a vocal advocate of audit reforms and system centred auditing practices rather than auditor centred auditing practices for many years.