Reforms to the VET FEE-HELP Loan Scheme
The Australian Government has made important reforms to the VET FEE-HELP scheme, which came into effect on 1st July 2015. The reforms are aimed at improving the quality and effectiveness of the scheme, and to better protect students taking out a VET FEE-HELP loan by:
- stopping training providers from offering inducements to students, like cash and laptops, to get them to sign up to courses that they don’t need, or are not capable of completing,
- stopping marketing agents and brokers ‘freelancing’ to sign up as many students as possible, often without being covered by any regulator,
- giving students more information that helps them understand that VET FEE HELP loans are real debts that impact their credit rating and have to be repaid,
- making it impossible for training providers to levy all fees in a single transaction, giving students more opportunity to consider their options before VET FEE HELP debts are incurred,
- protecting vulnerable students by requiring training providers to properly assess student capabilities before enrolment.