Reforms target VET FEE-HELP scammers

Thursday 12 March 2015


Important reforms will be made to the Australian Government’s VET FEE-HELP scheme to prevent unscrupulous marketers targeting vulnerable Australians and exploiting the scheme.

The Assistant Minister for Education and Training, Senator the Hon Simon Birmingham, today announced the Government will deliver a rolling campaign of legislative and other changes this year to deal with rogue training providers and better protect students taking out VET FEE-HELP loans.

The new measures will:

  • Stop training providers from offering incentives to students, like cash and laptops, to get them to sign up to courses that they don’t need

  • Stop marketing agents and brokers ‘freelancing’ to sign up as many students as possible, without being covered by any regulator

  • Give 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

  • Make 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 can be incurred

  • Protect vulnerable students by requiring training providers to properly assess students before enrolment

A fact sheet for students has been released to help students make informed choices about undertaking VET courses.

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