Money Minute – May 26 2017 “Education Scandal”

Money Minute – May 26 2017 “Education Scandal”

Now listen, the scandal of vocational training in this country should be something that haunts Bill Shorten and Labor Party, I think, all the way to the next election.

While in government, Labor decided to open up vocational training – where you might get a cert four certificate for in whatever skill you’re seeking to get.

The Gillard government, in its stupidity, allowed vocational students access to the VET fee-help system of student loans.

Now there were insufficient checks and balances on the training colleges – no performance hurdles to claw back money if students didn’t complete the course.

So training colleges sprung up employing commissioned based sales people…the more they sold, the more the government paid to them in tuition fees.

Students in our poorest areas were targeted, bribed to sign up for courses with free laptops, phones, and cash handouts even.

The students incurred massive debts, but only ever had to pay it back if their income rose above $54,000 a year.

The course completion rates were horribly low.

Now, the Federal Government is now thankfully cracked down on the rort.

So in the past few months has been a cavalcade of education companies going broke – Vocation, Careers Australia Network, which includes Sage Institute of Fitness, Australians Institute of Professional Education, Finish Education and Aspire College.

Last night, one of the biggest, Careers Australia also went into administration but even this is a nightmare.

It leaves 15,000 students across 13 campuses, and a thousand staff in limbo.

These organisations creamed $2.8 billion from the government in around four years, much of it will never be paid back.

It is a disgrace, and I’ll tell you what, we should really all be ashamed of that.

Markets

The Dow Jones up 76 points overnight . Dollar 74.56 US cents

Today Extra: “Many of these families are making money from having more children,”

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