Just one day after the Government announced it was scrapping a troubled loan scheme for vocational education courses, a private training college has announced it is going into liquidation.

The Australian Institute of Professional Education (AIPE) enlisted Ferrier Hodgson to undertake its liquidation one day after the Coalition unveiled details of a new program designed to replace the troubled vocational and education training sector's VET FEE-HELP scheme.

Ferrier Hodgson said it was undertaking an "urgent assessment" of the business but AIPE would continue to operate on a "business-as-usual" basis.

Federal Education Minister Simon Birmingham assured all current students at the private college, saying that they would be supported in finding new training institutions.

Mr Birmingham said in a statement that the Government was working to ensure all current students of AIPE were supported throughout the disruption to their courses.

"If an education provider ceases to provide a VET course of study, tuition assurance schemes provide a mechanism for currently enrolled students to complete their course at another provider, or request to have their debt remitted for uncompleted units of study," the statement said.

"AIPE's domestic student tuition assurance and students with VET FEE-HELP loans are administered by the Australian Council of Private Education and Training (ACPET).

"I have been in touch with ACPET's CEO Rod Camm to confirm that ACPET will be seeking to place all of AIPE's continuing students in ongoing studies at alternative providers.

"For those students who wish to continue their studies, ACPET will seek to match and offer students placements in similar courses," the statement went on.

The Minister said the Government would also work to ensure international students were similarly assisted.

On Wednesday, the Federal Government announced that private colleges would no longer be able to use brokers or cold-callers to try and recruit new students under a wide-ranging crackdown on dodgy operators.

VET has been plagued by unscrupulous educators who have taken advantage of successive governments' loan schemes by luring prospective students with laptops, cash and other incentives.

College subject to legal proceedings earlier in the year

Earlier in the year the Australian Competition and Consumer Commission filed for proceedings in the Federal Court against the AIPE alleging the college made false or misleading representations and engaged in conduct that breached the Australian Consumer Law.

The allegations also claimed that the company lured students with the use of so-called free laptops that were actually on loan.

"We allege AIPE marketed its courses to some of the most vulnerable and disadvantaged groups in the Australian community, including consumers from low socio-economic backgrounds and consumers with intellectual disabilities," ACCC chairman Rod Sims said.

The Government says the VET FEE-HELP scheme would be scrapped at the end of the year after growing complaints about private colleges rorting the system.

Mr Birmingham said the new payment program would demand tighter eligibility requirements and cap fees at $15,000.

AIPE colleges are based in NSW, Queensland and Western Australia.

They offered a range of courses including certificate, diploma and bachelor level across a number of disciplines as well as English Language Intensive Courses for overseas students (ELICOS).