TAFE Directors Australia (TDA) has welcomed the federal opposition’s plan to find savings from the poorly administered VET FEE-HELP loan scheme, with the overwhelming amount of funds flowing to private colleges.
A number of unscrupulous private colleges have taken advantage of the system, with some colleges referred to police and ASIC, after thousands of students did not complete courses and were left with large debts or qualifications of dubious quality.
However, TDA had not been consulted on Labor’s additional idea to cap VET FEE-HELP student loans at $8,000 per year. TDA expressed concern at the inflexibility this entails for varying levels of course style and scope.
The Australian Labor Party last week released its policy on VET FEE HELP reform.
Unfortunately, students and good quality training providers will be the victims of the unfair training loan caps announced. Labor announced it would impose a price, with no reference to market forces, of $8000 a year on the sector.
Across Australia every day when given a choice students are overwhelmingly choosing to study at private training colleges in their pursuit for innovation, flexibility and best practice.
The amount of $8,000 appears to be a totally random number and without evidence to support its selection. The release unfairly compares the cost of heavily subsidised TAFE training, where all infrastructure costs are paid by State and Territory Governments with those of private training providers.
What’s the objection to VET FEE-HELP cap? VET diploma fees almost trebled in a single year…..