Forty Per Cent of Vocational Loans Won’t Be Repaid, Says Study

With more on VET FEE-HELP loans, an analysis conducted by the Grattan Institute has found that more than a third of loans granted to Vocational Education and Training (VET) students will never be repaid. At 40 per cent, this compares to 21 per cent of ‘doubtful debt’ in the higher education sector.

The report, submitted as part of the government’s inquiry into private VET providers, raises concern that the federal government is failing in its responsibilities to assess borrowers’ suitability for the loan scheme and notes that the current threshold is too generous and should be lowered. Lowering the threshold to $50,000 — suggested as part of the higher education fee reforms — would bring VET doubtful debt down to 30 per cent.

See 40% of vocational students won’t repay their student loan: report for more information.