Training colleges securing thousands in Government funds by targeting people with disabilities

Updated

Unscrupulous training colleges are targeting people with disabilities and the homeless in order to cash in on government education funding.

The ABC has obtained evidence some colleges are recruiting people with intellectual disabilities to costly diploma-level courses funded with expensive VET-FEE-HELP training loans.

But the training offered is often unsuited as those targeted have a low level of schooling and high care needs which means they are unlikely to ever finish the course.

When students fail some colleges even try to sell them another course.

The new revelations follow an ABC report last week highlighting how some college recruiters are going door-to-door in public housing areas and shopping centres in a bid to to attract new enrolments.

Teachers and students say marketeers have also been spotted outside Centrelink offices and referral services for the homeless and drug addicted.

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There are also reports of telephone agents obtaining student details from job websites or disability programs in order to target them for new enrolments.

Students can borrow up to $90,000 under VET-FEE-HELP loans which they start to repay once they earn more than $53,000.

Once a loan is approved, the Government pays the colleges direct, with the majority of funds transferred before the student enrolment census date which falls early in the semester.

Reports suggest the loans are being sold to students under the premise they may never earn the amount of money required to pay the debt back.

The Federal Government said it is aware of the unscrupulous behaviour and has revealed plans to arm regulators with new powers from next year.

But the teachers union believes it is not enough and more needs to be done to protect those being targetted.

Disabled brothers targeted by college

When Jacqui Whitehead's son was recruited to a business management course she became suspicious.

Her 24-year-old son Lukus has a diagnosed intellectual disability and autism spectrum disorder. The Adelaide man completed year 10 with a special life skills qualification for people with a disability.

He was signed up for a diploma in business management by recruiters for Aspire College after being targeted outside Centrelink.

The Government needs to realise that they're handing money to these colleges and the kids aren't getting anything out of it. Jacqui Whitehead

Once it was clear Lukus was struggling Mrs Whitehead rang the school, to inform them he had a disability. Lukus also asked for an extension so he could finish his assignments.

"He told them he had a disability. They told him it didn't matter [and] it wasn't an excuse," Mrs Whitehead said.

The college's response to Lukus' difficulties was to sell him another course. He now has an $18,000 VET-FEE-HELP debt.

Lukus said he signed up to the second diploma in Interactive Digital Media because the course came with an expensive laptop.

"At first I thought I could pay it off if I got the job but then I realised I probably wouldn't get the job because I've done previous courses and they haven't worked out,'' Lukus said.

Lukus is not alone. His brother, who is also autistic has been targeted. Mrs Whitehead said her other son was harassed by telephone sales people from another company after they obtained his details from a job website.

"They were ringing him and hassling him to sign up for a course," she said.

"I had to ring them back because they were bullying him saying 'don't you want a job, don't you want to further your career'."

Mrs Whitehead said she is "disgusted". "I want Lukus to be able to train for his ability so that he can work, so that he can have a job for his capacity.

"I can't believe they're allowed to stand outside of Centrelink.

"I can't believe they get money for every student they get to sign up.

"The Government needs to realise that they're handing money to these colleges and the kids aren't getting anything out of it.

"And the Government's not getting their money back either because these kids aren't going to be able to pay for the debt because they're not finishing the course."

Aspire College did not respond to the ABC's inquiries.

Single mother slugged $40,000 for hairdressing

Single mum Rebecca Warfield was hoping for a second chance in life when she saw a flier for a hairdressing course.

She signed up to a Sydney-based training school but because of personal problems never attended any classes.

Months later she went to see an accountant and was told she had a $27,000 VET-FEE-HELP debt to the Government. The college was also chasing her for $10,000.

She discovered the course she had actually signed up for was a theory-based salon management course, not hairdressing. It is a distinction easily lost on Ms Warfield because she has dyslexia.

"They said there was a loan for this course and there was a good chance I wouldn't earn as much money to have to ever pay it back," Ms Warfield said.

"I don't read contracts and I have dyslexia [so] it's not my strong point to have to sit down and read paperwork. I find paperwork really frightening."

Ms Warfield said she made numerous attempts in the early stages of the course to contact the college and withdraw her enrolment.

"None of my phone calls were returned," she said.

You're selling them a lie because they don't have the capacity to get that job. They'll never get that diploma so they'll never get that job. But they'll always have that debt. NSW Teachers Federation training spokeswoman Maxine Sharkey

When she finally did make contact at the end of the course they tried to sell her another course.

"By that time I started to get really panicky... it was really daunting then to add another $40,000 on top of it. They were really blasé about it," she said.

Eventually she had to get lawyers involved to have the debt cancelled.

"I never stepped foot in the college, I never used any of the resources, I never took any of the teachers' time," she said.

"Basically they took $40,000 of mine that I didn't have. It was unethical and I do believe it was really callous. They saw me walk in the door and I was $40,000 to them."

Unscrupulous signings 'a free for all'

The teachers' union said it is hearing increasing reports of students with disabilities being signed up to courses beyond their means.

NSW Teachers Federation training spokeswoman Maxine Sharkey believes the colleges are selling false hope.

"You're selling a bright new future to an unemployed person, giving them hope that somewhere down the track they're going to have a great job," Ms Sharkey said.

There is a market being created so that businesses can swarm like bees to the honeypot really. Maxine Sharkey

"You're selling them a lie because they don't have the capacity to get that job.

"They'll never get that diploma so they'll never get that job. But they'll always have that debt.

"It just seems impossible that someone who is barely literate or numerate could even undertake the assessments for a diploma in business."

Ms Sharkey, who advises the State Government on disability education, said VET-FEE-HELP training loans did not operate the same as university loans known as HECS.

VET-FEE-HELP training loans attract a 20 per cent loan fee and are less generous than the HECS scheme.

"There is almost a free for all," she said.

"There is a market being created so that businesses can swarm like bees to the honeypot really."

Regulator to be given new powers

The Australian Skills Quality Authority said it will have new powers from next year to better regulate the training sector.

Chief executive Chris Robinson said marketing companies have been responsible for many of the issues in the sector.

"I think a lot of the problems that we've seen haven't been from training organisations, they've been from brokers who aren't regulated," he said.

"I think it's clear that there have been some cases of very unscrupulous behaviour.

"It's not the provision of a discount or laptops that's the problem, it's providing that to people without explaining they're also signing up to the VET-FEE-HELP debt.

"That sort of behaviour is not good."

Mr Robinson said while ASQA regulates colleges, VET-FEE-HELP was administered by the federal Department of Education.

Topics: education, disabilities, consumer-finance, federal-government, federal---state-issues, government-and-politics, australia

First posted