VET student loans to support only genuine students.

November 17, 2016

 

The education minister, Simon Birmingham, has revealed strict new rules for courses and training organisations in the VET student loans program that will penalise colleges with less than 75% pass rates by restricting enrolments. 

 

The Department of Education expects the reforms, which begin at the start of next year, to remove about a third of all private colleges from access to the loans scheme. The new criteria – which only provides provisional approval – could cut eligibility completely for more than 60 colleges whose students are currently approved under the existing system for access to loans. And colleges with higher pass rates and better results will be able to enrol more students who will be covered by government loans. 

 

For private colleges:

  • If the pass rate of the approved course is 75% and above, the college will be able to enrol 10% more students than their existing numbers in that course. 

  • If the pass rate of the approved course is between 50-75%, the college will be able to enrol 25% less students than their existing number in that course.

  • Courses with a pass rate below 50% will not