25. Provider default

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If your provider stops delivering your course, this is called a ‘provider default’. A provider defaults if they:

  • don’t start a course they’ve enrolled people in
  • stop delivering a course before it’s finished
  • close entirely while they still have students.

If a provider defaults, and you’ve got a VET Student Loan for your studies, the Tuition Protection Service (TPS) will help you to continue your studies. The TPS will move you to a replacement approved provider offering the same or a similar course. If there are no suitable replacement courses available, you may receive a loan re-credit for parts of the course you couldn’t complete because of the provider default.

If you’re studying with a public or government-owned provider (such as a TAFE), your provider will move you to a replacement course. If there’s no suitable replacement course, you’ll get a loan re-credit for parts of the course you couldn’t complete.

While you’re studying, you should make sure you keep up-to-date records that show your progression through the course. For example, keep your statements of attainment or other reports which show the competencies you’ve achieved. These records will help you to continue your studies if your provider defaults.

Further information about tuition protection is available at Tuition Protection Service - Department of Education, Australian Government.