This submission to the Senate inquiry into the private vocational education industry examines VET FEE-HELP debt. VET FEE-HELP is a loan scheme that principally supports students taking diploma and advanced diploma courses in TAFEs and private vocational education providers.
The submission contains an estimate of VET FEE-HELP doubtful debt – debt not expected to be repaid. This could be 40 per cent of the money lent, nearly double the rate of higher education. Taxpayers will incur the cost of unrepaid debt.
The submission proposes reducing the income threshold at which HELP debt must be repaid as one way of controlling HELP’s costs.