From 1 July 2015 important reforms to the VET FEE-HELP (VFH) scheme come into effect as part of the first phase of amendments to the VET Guidelines. The second phase of amendments will come into effect from 1 January 2016.
These reforms are the latest of Assistant Minister for Education and Training, Senator the Hon Simon Birmingham‘s measures to protect vulnerable students from the unethical actions of a small number of unscrupulous providers and their agents.
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 thatVET 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
The new VET Guidelines were published on 1 July 2015.
For more information, view the:
- read the VET Reform update – VET FEE-HELP amendments to the VET Guidelines come into effect – 1 July 2015;
- access the VET Guidelines on the Australian Government’s ComLaw website;
- download the VET FEE-HELP Reform fact sheet;
- original media release from Senator Birmingham – Withdrawal fees banned for courses – 25 June 2015