There is good news for students and providers using the VET Student Loan scheme, but why is no-one in government discussing it?

By CLAIRE FIELD

Late last year there were calls for changes to the VET Student Loan scheme (CMM 30 October 2019). Among the issues identified were significant problems with the scheme, including shorter courses (in terms of the units of competency required to be taught) being eligible for larger loans than longer courses.

In November 2019, the COAG Skills Council meeting agreed to a review of the VET Student Loan Scheme.

On 20 January, Michaelia Cash, Minister for Employment, Skills, Small and Family Business, made changes to the VSL scheme via legislative instrument. While this is an annual process (to add a small number of new courses to the VSL-approved list and to remove superseded or deleted qualifications), this year the changes were significant and explicitly addressed the issue whereby so many longer courses had very low loan caps.

Specifically the changes:

* moved 33 courses moved from Band One (a maximum loan of $5,264) to Band Two (a maximum loan of $10,528,) and

* moved 64 courses moved from Band Two to Band Three where students can access loans of up to $15,793.

The changes have immediate effect. Providers cannot raise their published fees but students who were facing a gap between the cost of their course and the previous loan cap will now not have to pay up-front-fees out of their own pockets.

The government is to be applauded for making these changes.

My sensible side says their silence on the issue is because they are the architects of the VSL program and do not want to discuss its problems.  My optimistic side says perhaps it is because there are more reforms of the VSL scheme still to be announced?

Claire Field advises on VET, international education and private higher education