$90M Debts Will Be Wiped For Australian Students Deceived By Dishonest Private Colleges

Australian students who’ve been deceived by “unscrupulous private education colleges” will have $90m of student debt reimbursed by the federal government. The debt reimbursement will take effect under the new redress scheme. The Typical Student team learned the details.  

As a result of the massive deception, students of unscrupulous private colleges were left without qualifications, but “were still expected to pay back loans which many didn't even know they had” as told by the SBS News. Most Australian students who took a vocational education and training course also known as a VET course, have been struggling with student debt and had to drop out.

How Many Australian Students Have Had Their Debts Reimbursed?

The federal government has created the redress scheme which already helped 8,000 students have their debts reimbursed. SBS reports, the total bill is currently in excess of $90M, and is expected to rise as thousands more students apply.

As for the VET FEE HELP scheme, it was scrapped in 2017 to prevent more students from being cheated on. Later on, the VET scheme has been changed for a much stricter one known as VET Students Loans. Under this scheme, loan providers “face tougher entry requirements and loans are capped depending on the course.”