Senate debates

Wednesday, 30 November 2016

Bills

VET Student Loans Bill 2016, VET Student Loans (Consequential Amendments and Transitional Provisions) Bill 2016, VET Student Loans (Charges) Bill 2016; In Committee

7:06 pm

Photo of Doug CameronDoug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Hansard source

by leave—I move opposition amendments (1) and (2) on sheet 7958 revised, together:

Incorporation:20161130:Opp amendments (1) and (2) on sheet 7958 revised

These amendments will allow the minister to grandfather a student under the current VET FEE-HELP scheme after the end of 2017 in circumstances in which this is fair and reasonable, such as illness or caring responsibilities where a student studies part-time or where a student is simply studying a course that will go for more than one year, as many reasonably do.

By the minister's own estimate, over 140,000 students will need to be grandfathered in the VET-FEE HELP scheme next year so they can finish their courses. It stands to reason that many of the students will not finish their studies by the end of 2017 when the grandfathering abruptly ends. It could be because they study part-time, because they have to take time off for illness or family, because their provider or course is not going to be eligible after next year, or simply because they are studying one of the many courses that runs for more than 12 months. The impact of this dead stop to grandfathering at the end of 2017 will be huge for students. They will be faced with having to pay the full cost of the course fees up-front if they want to finish. That is completely unfair. This is set to be yet another wave of VET students that the system will turn into victims, through no fault of their own. The outcomes are easy to see: students will not finish their courses, they will be left with debts but no qualifications, and they will simply be discouraged from further study.

It is very concerning that the minister has not provided anything in these bills to help these students, when it is abundantly clear that tens of thousands of students will be in this position. Labor is moving this amendment because we want to protect students—because it is wrong that students are again coming last in this debate. Students deserve to know, when they start their studies next year, that they will be able to afford to finish them. Of course, extending grandfathering is no excuse for dodgy providers signing on more students or charging inflated fees into the future. That is why this amendment gives the minister the powers he needs to prevent that.

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