One of Australia's largest training providers Evocca College has been forced to make significant changes to its business model to remain in the industry peak body.

The ABC can reveal the Australian Council of Private Education and Training (ACPET) had decided to expel Evocca after the ABC broadcast an investigation into the company's practices in March.

Chief executive of ACPET Rod Camm wrote to his members saying Evocca "acknowledges that the ongoing speculation and reporting involving it has undermined confidence in the sector".

But Mr Camm said that ACPET agreed to keep Evocca in its organisation as long as the company made big changes, including:

Separating the academic decision-making process from the commercial aspects of Evocca's operations

Separating the academic decision-making process from the commercial aspects of Evocca's operations Review and reporting back to ACPET on supporting students, reducing attrition rates, protecting students from unwarranted debt, appropriate enrolments and better entrance testing

Mr Camm said if Evocca did not comply, ACPET would reconsider its position.

In March, fomer Evocca staff and students told the ABC the college knowingly signed up students who could not cope with the demands of a diploma course, had very low graduation rates, and actively discouraged staff from allowing students to cancel courses.

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Evocca has 40 campuses around the country, three quarters of which are in disadvantaged areas.

It reaped more than $130 million in federal funding last year through the controversial federal funding system called VET-FEE-HELP, where private companies get paid for every course, even if students do not complete it.

Students owe the Government the cost of their course and pay it back once they earn more than $53,000.

Evocca strongly denied the allegations by former staff and students.

ACPET told its members: "Evocca takes responsibility for its own actions and will take every reasonable measure to play its part to restore and maintain trust and confidence [in the sector]."

Evocca declined to comment on ACPET's decision.

The ABC understands the federal watchdog for private training colleges, the Australian Skills Quality Authority, is conducting its own ongoing investigation into Evocca College.