Australian Government

Department of Education and TrainingFEE−HELP

Factsheet—Updated 3 July 2015

VET FEE HELP REFORMThe VET FEE−HELP loan scheme has made training providers, students, consumer lawstudy possible for over 410,000 students who advocates and regulators, peak bodiesmight not otherwise have had the opportunity, representing public, community and privateThe scheme provides eligible VET students with education providers and industry.loans to cover the cost of their higher level VET

The reforms will be implemented over the coursequalifications including Diploma and Advancedof 2015 and include eight priority areas for action.Diploma courses. The Australian Government is

highly supportive of the scheme. That is why it is These measures include:strengthening the scheme's design to ensure itprotects vulnerable students, taxpayers, and the 1. Banning inducemsnts to studentsreputation of Australia's high quality VET system, under the VET FEE−HELP schemewhilst also ensuring students can still access this Marketing and recruitment practices shouldimportant scheme. enable prospective students to select aThe Government has already: introducedtough new standards for registered trainingorganisations; committed more funding tothe national regulator, the Australian SkillsQuality Authority (ASQA), to implement the newstandards; and introduced new laws whichenable regulators to act more swiftly whenaddressing quality concerns.

In addition to these broader VET Reforms, on12 March 2015, the Hon Simon Birmingham,Assistant Minister for Education and Training,announced complementary VET FEE−HELPloan scheme reforms.

To inform the implementation of the newVET FEE−HELP reform measures, theGovernment held national VET FEE−HELPprovider consultations in April and May 2015.

The Government also formed aVET FEE−HELP Working Group, led by.Mr John Hart (Chair of the VET Advisory Board)to advise on the implementation of the reforms.The Working Group comprises representativesfrom both large and small VET FEE−HELP

VET FEE−HELP provider (provider) basedon the quality and price of training offered, ratherthan the offer of an inducement.

From 1 April 2015, inducements—such as,but not limited to, cash, meals, prizes, vouchersor laptops—to encourage potential studentsto enrol and sign up for VET FEE−HELP loanswere banned.

A provider is not able to issue a Request for aVET FEE−HELP loan form (the student applicationform to access a VET FEE−HELP loan) to astudent who has been offered an inducementto enrol in a course.

2. Tightening VET marketinga n d recruitment practicesFrom 1 July 2015, there will be strengthenedrequirements in relation to marketing andrecruitment practices.

The reforms work to ensure that adviceand information about the availability ofVET FEE−HELP is marketed accurately.

Enrolled students will have a clear understandingof their rights and obligations before they make adecision on their payment options.

• A provider or its agents will not be ableto market payment for training via aVET FEE−HELP loan as "free" or"government−funded". Providers ortheir agents will need to make it clearto prospective students that VET FEE−HELPis a loan that is expected to be repaid.

• From 1 July 2015, a provider must enter into awritten agreement with its agents. The writtenagreement must specify the responsibilitiesand requirements the agent must complywith in carrying out activities on behalf of theprovider, including providing full, accurate andup−to−date information about VET FEE−HELP.

• From 1 January 2016, a provider must notaccept a Request for a VET FEE−HELP loanform from a person unless two businessdays have passed from the date and timethe person enrolled. This will ensure studentshave had time to fully understand the detailsof their course enrolment and consider thefee payment options available to them.

• Also from 1 January 2016, students willreceive invoices from providers before eachcensus date, ensuring they have all theinformation they need to make study andpayment decisions.

3. Improving the understandingof how VET FEE−HELP operates,and students' rights and obligationsThe Government will improve informationavailable to students and the broadercommunity about the VET FEE−HELP schemeto ensure current and prospective studentsunderstand how income−contingent loans operate,and are aware of their rights and obligations.

• The Study Assist website(www.studyassist.gov.au) was updatedwith new information on VET FEE−HELPon 12 March 2015.

• There is now clear information for studentsabout who they can talk to if they have anyconcerns, queries or complaints about theirtraining provider, or their student loan.

• The Request for a VET FEE−HELP loanform has been changed to make expecteddebt loan amounts explicit and clear toprospective students. The form also nowrequires anyone under the age of 18 to havea parent or guardian sign the documentrequesting the loan.

• From 1 July 2015, providers and theiragents will be required to provide clear andaccurate information about VET FEE−HELPassistance and the fees that apply to any VETcourse of study. This will ensure clarity of theresponsibilities, obligations and rights of astudent who requests a VET FEE−HELP loan,to ensure students are not mislead as to thenature of VET FEE−HELP.

4. Streamlining the debt waiverand revocation processes forstudents und3r V−− TEE−HELPThe Government will make it easier for studentsto remove any VET FEE−HELP debt whichhas been unfairly applied in breach of theguidelines. Currently, students must appealto their training provider to remove a debt,which is only available under limited specialcircumstances, or, as a last resort, seeka waiver from the Department of Finance.

• It will be easier for students to seekto remove a debt that was enteredinto inappropriately.

• Training providers will be more accountablefor repayment for loans received by studentsthat occurred from poor recruitment andmanagement practices which are in breachof the new guidelines, including, whereappropriate, fines in addition to repaying theoriginal loan amount.

• These revised processes will be developedwith the Working Group and the AustralianTaxation Office.

• Pending the passage of legislation throughParliament, the measure will be implementedfrom 1 January 2016.

5. Strengthening the assessmentcriteriF:. ;:or, and ongoing scrutinyof, all training providersThe Government is strengthening the financialviability requirements for providers. To ensureongoing scrutiny of providers there will bea strengthening of consistency in reporting,accountability and transparency requirements.The Government will introduce extra assessmentcriteria for new providers and a reassessmentof the 'bona fides' of existing providers. Thenew criteria will focus on the training and tradinghistory of the applicant. For continuing providersthere will be an increased emphasis on assessingcompliance with the VET Guidelines, includingrequirements related to the fair and equitabletreatment of students.

* Pending the passage of legislation throughParliament, the relevant criteria will be appliedfrom 1 January 2016.

New Penalties for breaches of theGuidelinesThe Department of Education and Trainingcan currently take a range of actions againstproviders that breach the VET Guidelines,including issuing Compliance Notices andplacing conditions on a provider's approval,through to suspension or revocation.

The Government has committed $18.2 millionover four years to implement an enhancedcompliance regime for VET FEE−HELP, includingstrengthened programme administration andprovider audit and monitoring activities.

The Government will also introduce newpenalties, including fines, for significant breachesof the Guidelines. Subject to the passage oflegislation, the new penalties will apply from1 January 2016.

6. Ensuring student debt is incurredin line with course delivery andcontinued student participationThe Government will introduce requirements toban the practice of training providers levying theentire VET FEE−HELP course debt in one hit,upfront. The reform introduces the requirementfor tuition fees to be spread over four fee periodsacross the duration of a course, with a minimum

of four census dates. This measure applies totuition fees only and allows providers to continueto allocate units across the course flexibly,according to the individual needs of the students.

Following consultation with representativesincluding students, consumer law experts,providers, and the sector, the requirement willcome into place from 1 January 2016, allowing atransition period for providers to alter processesand systems to comply. The fee periodsrequirement is spelt out in Amendment No.1 tothe VET Guidelines 2015.

From 1 July 2015, providers must also ensurethere are no barriers to a student being able towithdraw from a VET unit of study on or beforethe census date for that unit, including nowithdrawal fees.

7. Establishing minimumpre−requisite and prior educationqualifications, including demonstratedliteracy and numeracy requirementsUndertaking a Diploma or Advanced Diplomacourse is a serious commitment, which theAustralian Qualifications Framework recommendstaking a period of around 12 to 24 months tocomplete. Providers will be required to assess thecapacity of each student to complete a trainingcourse before enrolment and before the offer of aVET FEE−HELP loan. For students undertakinghigher level VET qualifications, it is expected theseminimum requirements will include completingYear 12 or equivalent proof of competency in coreskills to a level appropriate for the course in whichthe student is seeking to enrol.

• From 1 January 2016, providers will have topublish an Entry Requirements Proceduredocument (including on their websites) thatsets out the requirements that a personmust meet to be eligible to enrol in eachVET course of study.

• A provider will need to assess individualsagainst these entry requirements and be ableto prove to the Department of Education andTraining and/or the national regulator, theAustralian Skills Quality Authority (ASQA) thatthis assessment has taken place.

8. Enhancing training and outcomesinformation, allowing students tomake more informed choices abouttraining providers and coursesStudents and prospective students will haveaccess to additional and improved information ontraining choices and the employment and otheroutcomes flowing from training paid for underthe VET FEE−HELP scheme, to ensure they canmake informed decisions about what trainingthey do and where they do it.

From July 2015, the MySkills website(www.myskills.gov.au) will provide students with:

• A VET FEE−HELP calculator to assiststudents in understanding their potential debtobligations after five and ten years if unpaid.

• Identification of training providers that havereceived an adverse decision from theregulator.

• Accessible, course−level student outcomesinformation for 34 of the most popularVET FEE−HELP eligible courses.

• Average price information (where enteredby training providers), to assist students inassessing value for money.

• From December 2015, the MySkills websitewill display information collected fromstudents on the quality of their trainingexperience and the employment or otheroutcomes that followed; and from employerswho have taken on students who havecompleted units of study or graduates oftraining courses.

• The information will be collected throughthe National Centre for Vocational EducationResearch's (NCVER) Student OutcomesSurvey and Survey of Employer Use andViews along with direct evidence collectedfrom current and former students.

er e,nfation Timeframe

1 The banning of prohibited inducements to enticestudents to enrol under the VET FEE−HELP scheme.

1 April 2015

2 Tightening VET marketing and recruitmentpractices, including what is communicatedabout the loan scheme to prospective students,with more information available about the roleof the communicator.

From 1 July 2015, withinvoices from 1 January 2016

3 Improving the understanding of how VET FEE−HELPoperates, and students' rights and obligations.

Student Factsheet —March 2015

New forms from 1 June 2015

4 Streamlining the debt waiver and revocationprocesses for students under VET FEE−HELP.

1 January 2016 (pending thepassage of legislation)

5 Strengthening the assessment criteria for, andongoing scrutiny of, all VET FEE−HELP providers.

New criteria will apply from1 January 2016 (pending thepassage of legislation)

6 Ensuring student debt is incurred in line with coursedelivery and continued student participation.

Protecting studentwithdrawal from 1 July 2015

Fee periods requirementfrom 1 January 2016

Establishing minimum pre−requisite and prioreducation qualifications, including demonstratedliteracy and numeracy requirements.

1 January 2016

8 Enhancing training and outcomes information,allowing students to make more informed choicesabout training providers and courses.

From March 2015

Note: The purpose of this information factsheet is to give you a snapshot of theVET FEE−HELP reforms and is not inclusive of all reform details. The VET Guidelines 2015(including any amendments) and Higher Education Support Act 2003 should be reviewedfor full details of the new requirements.