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Student loan caps must be part of total redesign of vocational funding system

Peter Noonan writes in The Conversation (9.5.16) about proposed federal government changes to the funding system for the vocational education and training sector. He argues that any changes need to ensure that student loans are capped, highlighting the role that the states also play in the sector’s funding system.

‘In his budget address, Opposition Leader Bill Shorten said Labor would introduce a cap of $8,000 on student loans for vocational education and training (VET) courses.

‘A course loan cap is a sensible option, but it must form part of a total redesign of the VET FEE-HELP student loan scheme in the first instance, and of the whole VET funding system in the longer term.

‘Currently, there are no loan caps for courses where providers set their own fees and don’t receive a course subsidy through the states.’

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