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VET & TAFE higher than for university students. Fowler notes that more than half of those studying Certificate III or above fail to complete their course.
He says these different demographics mean a rollout of HELP loans to the VET system would differ greatly, in actuarial terms, to the university system – and any changes have to take into account the lower income these students receive.
“ The important point to make is that the traditional higher education actuarial model applies less and less as you move into the VET sector, and away from the higher education sector,” Fowler says.“ The paper correctly identifies that for at least six months after our surveys, the salaries earned across all the vocational educational qualifications are significantly less than the current threshold [ for starting repayments ]. So you’ re clearly going to have to make those changes.”
Fowler says there are serious questions the report fails to address. He cites the possibility of denying loans to students who already have several VET or higher education qualifications, pointing out that many state bodies have funding schemes for these students. Fowler also warns extending fee help to Certificate III and IV students may encourage unscrupulous providers to rort the system.
“ There is significant risk if students are going to receive loans at a Cert III level,” he explains.“[ We might well have ] some examples of providers who would unreasonably encourage students into things they aren’ t yet ready to attempt.”
Danny Bielik, chief executive of vocational training provider Management Consultancy International, and co-presenter of 2GB’ s Courses and Careers show, acknowledges that some providers – both public and private – may rort the system. But he says VET students still need fee assistance and government should provide it, as vocational education gives people a second chance.
“ I would say that one of the things we need to remember, when you talk about student capability, is that vocational education training is part of an education continuum that is designed specifically to pick people up when they fall down,” Bielik says.“ School can’ t come back in when someone is 18 or 19 or 24 years old and pick them back up. Really, only vocational trainers give people the opportunity to pick up and reshape their lives.”
When modelling a rollout of fee assistance, Bielik says, government needs to seek and heed more advice from employers, manufacturers, educators and students, rather than relying on old data – as he says governments have done in the past. He says government needs to fix up its decision-making and make fee help that is efficient and streamlined, rather than a confusing conglomeration of funding arrangements.
Bielik says this is essential for Australia to have a qualified workforce and to maintain economic prosperity. ■
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