From next year, the federal government will save VET and non-university higher education students from college closures. “This is about protecting students no matter where they study,” Assistant Minister for Voced and Skills Karen Andrews says.

The minister is set to announce the existing Tuition Protection Service for international students will be extended to cover all VET and non-uni higher education provider study loans.

“If a study provider closes, the government will give students the support they need to continue their studies. That could be with another provider in a similar course, or, if a similar course isn’t available, students may receive a re-credit for units of study commenced but not completed,” she says.

The scheme will also pay an incentive to providers who pick-up students from colleges that fail.

Ms Andrews says the programme will be funded by providers. TAFE colleges will pay an administrative levy while private providers will pay this, plus a risk levy and an additional surcharge.

Pending legislation, the levy will be calculated on advice from the Australian Government Actuary, which will include provider data. Indicative levies are expected for consultation before year end. When the scheme is in place levies will be based on providers’ previous year data.

The new scheme will be run by a statutory appointment, supported by an independent advisory board.

The government announced a protection scheme was coming a year back, and this is a big step on the long path to restoring community trust in private training providers in the aftermath of the VET FEE HELP catastrophe.