VET FEE-HELP RELIEF AS STUDENT DEBT WAIVERS BEGIN

The Liberal National Government has re-credited FEE-HELP balances for over 100 students under new laws that commenced on 1 January 2019.

Last year, the Senate passed new laws to help students who, due to the inappropriate conduct of their VET provider, incurred debts under Labor’s disastrous VET FEE-HELP scheme. 

Minister for Small and Family Business, Skills and Vocational Education, Senator Michaelia Cash, said it was difficult to predict how many students were ripped off by unscrupulous providers, but “potentially thousands of former students incurred a VET FEE-HELP debt when they simply shouldn’t have”.

“VET FEE-HELP is a lesson in how bad policy can affect the lives of thousands of people,” Minister Cash said. 

“The measures now in place ensure eligible vulnerable students can escape the shackles of debt wrongly incurred, and get on with developing skills and finding employment.” 

Under the Liberal National Government’s new legislation, students affected by Labor’s dodgy policy are now able to apply to the VET Student Loans Ombudsman (VSLO) to have their debts removed. 

The VET Student Loans Ombudsman will assess these applications and make recommendations for action.

“In just over a month around 100 students have been re-credited and nearly $3 million worth of debts wiped since we introduced this policy,” Minister Cash said.  

“This represents about 2 per cent of the ‘backlog’ of VSLO complaints about VFH providers. Over the coming months, we expect to re-credit the debts for thousands more students building on over $90 million which has been already paid out to approximately 8,000 students. This number will climb as more students realise they were a victim of Labor’s disastrous policy.

“We are restoring confidence back in the sector and making sure that the status of our VET sector remains world class.”