The Morrison government has this year wiped about $500 million in dodgy debt accumulated by unsuspecting students as part of the most disastrous education rort in Australia’s history.

Three years after the government scrapped the botched vocational loan scheme known as VET FEE-HELP, the defunct program is continuing to have an enduring impact as more people discover they were duped by shonky private providers.

The Morrison government has waived the illegitimate debts of 38,000 vocational education and training students. Credit:Alex Ellinghausen

The Age and The Sydney Morning Herald can reveal that between January and October 31 this year, Canberra approved the removal of more than $493 million worth of “inappropriate debt” for about 38,000 students, most of whom had loans issued without their consent when they were signed up to substandard courses.

But in a sign that the problem is far from over, the Commonwealth Ombudsman has warned that it could take up to a year to assess thousands more unresolved complaints, due to the unprecedented volume of people coming forward seeking to have their debts re-credited.