VSL – The first six months, well sort of.

As many of you are aware the report on the first 6 months of the Vet Student Loans (VSL) Scheme, which replaced VFH at the beginning of the year has been released.  Now while it is not too long (a mere 31 pages, plus a spreadsheet of data), it does make for some interesting reading.  It is important to note that this report is on the six month transition period between VFH and VSL and some of the data is for providers, who while part of the transitional program did not have their approval to deliver VSL courses renewed under the full scheme.  There were 167 under the provisional arrangements but only approximately 125 have continued into the full scheme.  The other significant thing to remember about some of the details in this report is that there are caps of 5,10 or $15,000 associated with the vast majority of courses listed, with Aviation courses having a much higher cap than others.

Through transition there were 167 providers, 35 were TAFEs and other public institutions and 132 were private providers, and interestingly of that 167 only 138 enrolled students who accessed VSL funding.  A total of 24,492 students had VSL approved for a total of $78,131,044.  This represents an average across all enrolments of just over $3000 per student.  One might say on these figures alone, if this program has achieved nothing else it looks as if it has achieved the government’s goal of reducing the student debt.  It seems clear that the days of unbridled greed both in terms of enrolments and the fees being charged are well and truly over.

What is a little bit more interesting is that public providers seem to be the clear winner in the VSL funding stakes, with TAFE QLD pulling in the most funding at a shade over $13 million, and TAFE NSW coming in second with only about $8 million.  In fact all but one of the top ten spots in the VSL league ladder are held by TAFEs or public institutions with BasAir aviation college in tenth place. The truly interesting thing for me in all of this is the change in the league tables for most popular courses, with the perennial winner, the diploma of business dropping back to sixth, and the fourth placed, under VSL, Diploma of Leadership and management sliding way down the pack to a dismal twenty-first.  The upward mover is screen and media now coming in at fourth having previously been pretty much unranked, with Nursing and Community services still holding onto their VSL popularity.  What does this mean, well, what it could mean is that without the unfettered fees of VFH, slinging brokers (which you can’t really use now anyway) in excess of $5,000 to grab students off the street so you could enroll them in an $18,000 Diploma of leadership and management is no longer a sustainable business model, and perhaps when these students aren’t being pressured into signing up over the phone, at their front door or as they exit centrelink it turns out that most people don’t actually want to do the course and perhaps only did it so they could get that Ipad that was on offer.  Oh sorry I must have slipped my cynical hat on there for a moment without noticing.

If I am being really honest this report doesn’t actually tell us very much at except that VSL has done what it had been expected to do which is to curb the out of control spending which had occurred under VFH, and reign in some of the abhorrent business practices which had grown up around the program as well.  It is far to early to tell whether the design is right, I get the feeling it is at a high level but needs some adjusting where the rubber hits the road, and whether new issues will pop up as the program marches forward.  Is it perfect, no.  Is it better than the utter disaster we had previously, at least in my opinion yes.

Anyway that’s just my opinion.

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About pauldrasmussen
Paul Rasmussen is one of Australia’s most widely read Vocational Education and Training Commentators. He provides deep, unbiased analysis and insights not only on topical issues, but also on the underlying structure and policy which supports the industry. His writing and analysis has been praised for its uncompromising and thought provoking style and its ability to focus on the issues of real importance to the sector. He has advised various government departments and ministers, training providers, public and private organisations, not for profits and small to medium enterprises on the VET sector and the issues and opportunities facing it. He is one of Australia’s most awarded learning professionals and a regular speaker at a range of conventions and forums. His extensive experience in vocational education, and learning and development coupled with formal qualifications in philosophy, ethics, business and education management allow Paul to provide a unique view of the road ahead and how to navigate it.

One Response to VSL – The first six months, well sort of.

  1. Mark Jones says:

    Must agree Paul…at least now students seem to be realising a better value proposition…more so I am hoping for far better learning outcomes! (MJ)

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