Stranded trainees to get ‘tuition insurance’

by Brett Henebery31 May 2017
The Federal Government says “tuition insurance” will be given to thousands of students affected by the recent collapse of Careers Australia.
More than 7,000 vocational students across Australia were affected when the major training provider, Careers Australia, went into voluntary administration last Friday.
Speaking to Radio National Breakfast today, Federal Education Minister, Simon Birmingham, said vocational students whose courses were thrown into limbo by the collapse will now be able to continue their training through TAFE, or opt for a refund.
Senator Birmingham said the insurance options taken out with TAFE Directors Australia were now being examined by his department, adding that one task would be to ensure the affected courses were recognised.
NSW Central Coast trainee, Gail Winters, was just a week away from completing a nursing diploma, which had cost her $30,000.
Senator Birmingham said he was aware of Winters’ case and was taking action.
“We’ve been making sure that the NSW TAFE system understands that her training should be recognised and credited because it has been appropriate ... for the nursing degree or the diploma which is a well-regulated one by other authorities,” Birmingham told Radio National Breakfast.
“And so, we expect all of those students will be supported and they will be getting further information over coming days.”
The Federal Government says it is now cracking down on trainers due to rising costs.
“The old (VET) blew out from just a few hundred million dollars to a few billion dollars and saw completion rates – including at Careers Australia – below 20% in many instances,” he said.
“And so we make no apologies for putting in place a far more rigorous regime for student loans and for vocational training providers, but of course we will do everything possible to assist those students impacted by this action.”

Related stories:

Government announces support for Careers Australia

Huge training company goes into administration