FEE-HELP for VET

A Brief Analysis

Much of the conversation outside the programed sessions at the recent ACPET conference in Perth was speculation concerning the proposal to make FEE-HELP available to the Vocational Education and Training sector. That this extension of FEE-HELP is to VET is inevitable was driven home by the Labor shadow spokesperson for Education Steven Smith, who confirmed that both sides of the political divide supported the move.

Essentially FEE-HELP is a governement deferred loan to allow students to pay tuition fees. The advantage for VET RTOs is obvious, making their higher courses offerings much more appealing to studnets. And this is basically the intention behind the scheme, to attract more students into higher qualifications pathways: within the next decade 70% of qualifications will need to be upgraded from a Cert IV to Diploma and Advanced Diploma levels.

The much mooted skills shortage that Australia faces and the part the VET sector has to play in alleviating it led the Government to extend FEE-HELP to certain VET courses and establish VET guidelines in the Higher Education Assistance Amendment Bill 2007, still before Parliament.

The Requirements

How do RTOs qualify for FEE-HELP?

Whilst the legislation is still before the Parliament it is naturally impossible to firmly establish the criteria RTOs need to satisfy in order to be eligible for FEE-HELP. However,given that both parties will support the extension of FEE-HELP to VET, it is possible for interested RTOs and VET providers to prepare for the passing of the legislation.

Eligibility Criteria :

      1. Be a body corporate whose principal purpose is to provide education;
      2. Be a Registered Training Organisation as listed on the National Training Information Service (NTIS);
      3. Be financially viable and likely to remain financially viable;
      4. can offer VET accredited Diploma and Advanced Diploma courses with credit transfer arrangements and/or VET accredited Graduate Certificate and Graduate Diploma courses;
      5. Is part of an approved tuition assurance scheme, a guarantee or an exemption; and
      6. Have administrative procedures and capacity to meet reporting requirements.

The Issues

What are some of the complications of FEE-HELP for VET?

Although the final criteria for eligibility have not been set, what DEST has prefigured provides plenty of pause for thought. Despite the obvious attraction FEE-HELP has to students, it also imposes significant obligations on education providers. There is a significantly more onerous reporting burden, requiring a suitable records management structure and staffing levels to track student achievements. Students have untill the published census dates (set by the provider, based on 20% of the course load) to withdraw without paying fees: this means that suitable cash flow structures are in place, and so may cause difficulties, particularly for smaller RTOs.

Only providers servicing the upper level qualifications of Diploma and Advanced Diploma will be eligible: this might make it viable for RTOs to add qualifications of this level to their course offerings. Clearly, the decision to apply for FEE-HELP is one that involves the long-term educational future of any provider. Applying for FEE-HELP is a strategic decision that could alter the direction of any provider that opts to register for FEE-HELP.

However perhaps the area that causes most concern at present is the necessity for clear credit transfer arrangements that will allow the student to continue to draw from their allocated loan in further education. Of course, given that only Diploma and above qualifications will be eligible, this means clear credit transfer and articulation agreements with Higher Education Providers are a necessity. The confusion is furthered by the lack of clarity attached to this pre-condition at the moment; does it mean that only Australian Universities will be considered suitable, or are for-profit HEPs also suitable?

It is this question that needs to be answered in order for the VET sector to benefit from FEE-HELP, and also perhaps reveals the inconsistencies still present across all sectors of further education. If the AQF was about establishing clear pathways and facilitating mutual recognition across the education arena, why does the government require transparent, established agreements between providers in both sectors?

Doesn't the AQF establish that a Diploma is a Diploma is a Diploma, whoever awards it?

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Basic Requirements

  1. Be a body corporate whose principal purpose is to provide education;
  2. Be a Registered Training Organisation as listed on the National Training Information Service (NTIS);
  3. Be financially viable and likely to remain financially viable;
  4. can offer VET accredited Diploma and Advanced Diploma courses with credit transfer arrangements and/or VET accredited Graduate Certificate and Graduate Diploma courses;
  5. Is part of an approved tuition assurance scheme, a guarantee or an exemption; and
  6. Have administrative procedures and capacity to meet reporting requirements.

 

Considerations

FEE-HELP requires some fundamental organisational and governance changes: e.g. there is a greater reporting load and courses need to be unit (rather than competency) based.

mediagogy position

mediagogy believes that the decision to register for FEE-HELP is not one an RTO can take based on short term gains, or increase in enrollments. It is a strategic decision that impacts the entire furure direction of any provider. mediagogy has researched the implications and offers strategic advice to VET providers considering the move.

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