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Vocational Education and Training VET FEE-HELP Scheme changes

Regulation Impact Statement – Department of Education and Training

On 15 October 2015, the Minister for Vocational Education and Skills introduced legislation to address inappropriate marketing practices occurring under the VET FEE-HELP (VFH) student loan scheme by some Vocational Education and Training (VET) providers and their agents. The problem identified in the Regulation Impact Statement (RIS) included opportunistic behaviour by some providers and their agents that has contributed to rapid growth in the number of students taking out VFH loans, especially from students without the ability to successfully complete their studies. The proposed changes include:

  • regulation of marketing practices;
  • strengthened assessment criteria for providers;
  • enhanced information for students; and
  • minimum prerequisite education qualifications for intending students.

The Office of Best Practice Regulation (OBPR) assessed the RIS prepared by the Department of Education and Training as compliant but not best practice. To be best practice the RIS needed to more clearly identify the nature of the problem and provide a more thorough and in-depth analysis of the likely impacts on VET providers and the sector as a whole. The RIS estimates an average annual regulatory cost saving of $26.4 million a year. The OBPR has agreed to the regulatory cost saving.