A new report warns that the VET FEE-HELP scandal – which has been well played out in the media- is believed to be a key cause in students deciding to choose universities over Vocational Education options.
The report which was released earlier this month by the Mitchell Institute discussed the current participation levels in Tertiary Education in Australia, and a key section of the report focused on the decreasing participation rates within the VET sector.
“Significant reputational damage to the sector from the VET FEE-HELP scandals is one of the factors causing students to turn away from Vocational Education” the report stated.
The scandals the report is referring to, have been surfacing since last year in which numerous private training organisations exploited the VET FEE-HELP student loan scheme, due to loose rules and regulations set in place by the government. The repercussions of this have included billions of wasted dollars, students left in debt and without ‘proper’ qualifications and the prosecution of multiple private colleges.
Other key contributing factors to students choosing Higher Education over Vocational Education according to the report, was the increasing level of student fees without access to income contingent loans and the declining levels of public funding.
The money being invested in Vocational Education by the federal and state governments is falling and a significant amount of money has already been wasted in the failed VET FEE-HELP loan scheme. To add to this, the report predicts Commonwealth funding is on track to fall in 2017-18.
According to the Mitchell Institute, this combination of slashed funding and a damaged reputation has been a key catalyst for the enrolment and participation levels in VET to now be in decline. The report predicts these rates are likely to fall even further in the second half of 2016.
As a measure to proactively improve VET participation the author of the report professorial fellow Peter Noonan, argues that Vocational Education needs a new funding model and measures to improve quality and confidence in the sector.
“Without a new and sustainable funding model and measures to improve quality and confidence in VET, the sector is not well placed to underpin growth in participation within Tertiary Education into the next decade”, he said.
The report concluded that a key way to build confidence within the sector and establish a secure funding model is to create an independent oversight body, which can give long-term analysis and advice.
Currently, decisions on things like VET funding and the responsibility of Vocational Education is split between the Commonwealth and the different states, which means there is no single body accountable for decisions made.
“If we could create a separate third-party entity to make decisions cohesively and provide long term analysis on issues like funding and catering better to school leavers, the VET sector would be on the right track,” the report concluded.
Talks to rationalise the VET system and possibly centralise responsibility with the Commonwealth have been underway over the last year, but no definite conclusions have been made.
To have a look at the full report and read the analysis on Australian Tertiary Education participation rates, visit the Mitchell Institute