Subject to the passage of legislation, VET Student Loans will commence on 1 January 2017, replacing the current VET FEE‑HELP scheme, which will cease on 31 December 2016.

If approved by parliament, the Department of Education has published the following information on the implementation of the planned VET Student Loans program.

Current continuing students accessing VET FEE-HELP, have the option to continue accessing VET FEE-HELP until 31 December 2017.

Students already signed up for a course that does not start until 2017will no longer be eligible for VET FEE-HELP. However students can apply to access VET Student Loans from 1 January 2017, should their chosen RTO and course be eligible.

Current VET FEE-HELP approved providers, subject to meeting eligibility criteria, will be granted provisional approval as a provider for a six month transition period from 1 January to 30 June 2017.

To be granted provisional approval as a provider for a six month transition period, providers will be assessed against key selection criteria, including whether the provider is subject to an active compliance action, compliance history, and a range of quality measures.

During the provisional approval period, private VET FEE-HELP providers will be required to apply for formal approval under new, streamlined eligibility requirements.

No new providers will be approved as VET providers under VET FEE-HELP. Assessment of current applications for VET FEE-HELP approval has ceased.

Registered Training Organisations (RTOs) seeking to become a VET Student Loan approved provider will need to make a new application to be approved for the new program.

Applications will open following tabling of the VET Student Loans Guidelines in Parliament – expected to be towards the end of 2016. Applications will be assessed and decisions made as soon as possible.

Registered Training Organisations can apply in the formal application round and, if approved, will be entitled to enrol new students from 1 July 2017.

All current private VET FEE-HELP providers, and any new private providers, will be required to apply and meet new eligibility requirements to participate in the new VET Student Loan program. Eligibility criteria will include:

• Financial performance. Evidence required will include audited general purpose financial reports from the last three years.
• Strong management and governance. Applicants will be required to list persons of influence. Each person listed may be subject to a fit and proper person check.
• Links with industry. Evidence may include an assessment of the applicant’s relationship with peak bodies and employers, and references from industry and employer groups.
• Student outcomes.Evidence may include data on completion rates at the course and unit level, data on student outcomes and student satisfaction, and plans on how to continue to improve upon completion rates and student outcomes.
• Three year track record. Evidence may include a sound history delivering state subsidised courses, capability to report data accurately and on-time, data on student complaints, and Australian Skills Quality Authority (ASQA) compliance history.
• Course scope and fees. Evidence may include the courses they wish to access the new loan program for including mode of delivery for each course and fees.

For further information please contact us at info@donaghyleith.com.au or via telephone at 03 9421 1130 or 04 0652 3052.