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International education providers ‘gaming the system’ undermine Australia’s reputation, inquiry hears

The reputation of the vocational education and training (VET) sector is at stake unless immediate action is taken to address misconduct among international education providers, according to testimony given during a parliamentary inquiry.

During the inquiry, it was revealed that certain providers were collaborating with unregulated international education agents to lure students away from reputable public institutions in exchange for hefty commissions. These providers were also involved in activities such as selling work visas and operating "ghost schools" where students did not attend classes but still received degrees.

Labor MP Julian Hill emphasized the negative impact of these unethical practices on students and the sector's reputation. He warned that if the situation is not addressed promptly, it could lead to the public losing trust in the VET sector.

Hill stated, "The urgency of this matter cannot be overstated. If we fail to take swift action, the community will turn against this sector. We must confront this issue head-on."

He further criticized the lack of regulatory enforcement, explaining that the focus should be on regulating the ecosystem surrounding the providers, ensuring proper documentation, and monitoring the quality of graduates produced by these institutes.

Currently, approximately 180,000 international students are enrolled in the VET sector, studying at around 900 providers overseen by the Australian Skills Quality Authority (ASQA).

During the inquiry, ASQA CEO Saxon Rice acknowledged the risks associated with poor practices but admitted that the current regulatory model does not assess teaching quality or graduate outcomes. Instead, it primarily focuses on assessing individual provider risks.

ASQA has received a total of 470 complaints and intelligence reports about training providers since July 2022. However, only seven providers have faced registration cancellations or suspensions during the same period.

A former English teacher, who worked at a private educational institute with multiple campuses across Australia, shared his experience with Guardian Australia. He revealed that the institute engaged in unethical practices by using educational agents to enroll international students in courses that lacked updated textbooks, proper accreditation, qualified teachers, and maintained unsanitary classrooms. These courses came at a monthly cost of approximately $1,000.

The education agents operated from the same building, on the same floor as the institute. The former teacher highlighted the agents' role as intermediaries, connecting students to Australian offices and courses without considering the course quality. Their primary concern was earning significant commissions. Unfortunately, this arrangement benefited neither the students nor their education quality due to the exorbitant costs associated with these substandard courses.

Although the institute was accredited by ASQA and claimed to provide pathways to affiliated public universities, it has received numerous formal complaints. The former teacher further disclosed that they were provided with outdated teaching materials and forced to teach in overcrowded classrooms with plastic-wrapped seats. He received no training, and his credentials were not verified. Additionally, many other teachers had poor English skills, and there was a constant turnover of managers.

The former teacher described how the weekly tests appeared to be sourced from random websites, making cheating easy. He expressed concerns about the lack of academic integrity within the institution.

Speaking before the inquiry, Menelaos Koumides, the managing director of the Australian Academy of Vocational Education and Trades, criticized the current regulatory system, asserting that it is failing to address the issue effectively. He highlighted the need for independent assessments to hold registered trading organizations accountable and promote transparency. Koumides also pointed out the excessive commissions received by agents, with 98% of students being enrolled through agents. These problems, he argued, are the consequences of a regulatory system that was never suitable for its purpose.

Koumides further revealed that students were receiving passing grades with minimal study requirements, indicating a failure of the system to prioritize quality.

To ensure the integrity and reputation of the VET sector, immediate action must be taken to address malpractice among international education providers.

To safeguard the integrity and reputation of the VET sector, urgent measures are imperative to combat the misconduct prevalent among international education providers. The revelations made during the parliamentary inquiry underscore the gravity of the situation and the need for prompt action.

The unethical collaboration between certain providers and unregulated international education agents, resulting in the diversion of students from reputable public institutions for personal gain, is deeply concerning. Instances of selling work visas and establishing "ghost schools" where students receive degrees without attending classes further compound the problem. Such unscrupulous practices not only harm students but also pose a significant threat to the sector's social acceptance.

Labor MP Julian Hill emphasized the urgent need to address the issue at hand. Failing to take decisive action would risk a growing disillusionment within the community towards the VET sector. He underscored the importance of confronting these challenges without delay, recognizing the persistent inaction that has characterized the past.

Hill also criticized the existing regulatory framework, highlighting the focus on administrative processes rather than quality assurance. He stressed the necessity of regulating the entire ecosystem surrounding education providers and ensuring transparent oversight of graduate outcomes to ensure the sector's credibility.

Presently, the VET sector accommodates approximately 180,000 international students across 900 providers regulated by ASQA. While ASQA's CEO, Saxon Rice, acknowledged the risks associated with poor practices, it was acknowledged that the current regulatory model falls short in assessing teaching quality and graduate outcomes. The focus primarily rests on evaluating individual provider risks, necessitating a comprehensive reevaluation of the regulatory approach.

ASQA has received a substantial number of complaints and intelligence reports concerning training providers since July 2022, indicating the widespread nature of the issue. However, the limited number of cancellations or suspensions of registrations raises concerns about the effectiveness of the enforcement actions taken thus far.

The testimony of a former English teacher at a private educational institute revealed alarming details. The institute, accredited by ASQA, was found to engage in ethically questionable practices. It employed educational agents to enroll international students in courses that lacked updated materials, proper accreditation, qualified instructors, and maintained unhygienic classrooms. These substandard courses came with a hefty price tag of approximately $1,000 per month.

The presence of the education agents within the same building, alongside the institute, illustrated their instrumental role in funneling students through intermediaries. The agents prioritized their financial gains over the students' education, resulting in exorbitant costs without commensurate quality. This arrangement not only failed the students but also compromised their academic journey.

The former teacher shed light on the institute's deficiencies, including the provision of outdated materials, overcrowded classrooms, lack of training, and inadequate credential verification. Additionally, a prevalence of poor English skills among the teaching staff and a high turnover of managers further deteriorated the educational experience.

The former teacher further highlighted the compromised academic integrity within the institution, with weekly tests being sourced from random websites, enabling easy cheating.

Menelaos Koumides, the managing director of the Australian Academy of Vocational Education and Trades, offered valuable insights into the regulatory system's shortcomings. He emphasized the pressing need for independent assessments to hold registered organizations accountable and ensure transparency. Koumides drew attention to the excessive commissions received by agents, a staggering 98% of students being enrolled through such intermediaries. These issues reflect the systemic inadequacies of a regulatory system ill-equipped to address the evolving challenges.

The urgency to rectify these systemic flaws and prioritize quality cannot be overstated. Failure to do so would undermine the credibility of the VET sector and compromise the aspirations and well-being of students seeking vocational education and training.

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