42. Genuine students

The department is not required to pay a loan amount for a student if we are satisfied the student is not a genuine student. Students must complete a valid eCAF and all required progressions in the eCAF system to keep their eligibility for a VET Student Loan.

If a student fails to complete 2 consecutive progressions the department may decide that the student should no longer be considered a genuine student. This will affect their payments. Payments assessed as not valid will be errored and will appear in the monthly Payment Report in HITS.

The Secretary of the department has the discretion not to re-credit a student’s HELP balance where they are satisfied the student is not a genuine student.

42.1 - Determining whether a student is genuine

To determine if a student is genuine, consider whether:

• the student is reasonably engaged in the course
• the student has knowledge of course requirements and other aspects of the course
• the student is satisfying the course requirements
• the student is logging onto an online course
• the student is enrolled in more than one course
• there is adequate communication between you and the student.

Factors which may suggest a student is not reasonably engaged with their course include:

• if the student has not satisfied course requirements for the course or participated in assessment activities for the course
• if the course is an online course – the number of occasions on which the student has logged into the course is not insignificant
• if the student has not logged into the student portal up to and including the day on or before the census day for a unit
• if the student has not accessed course materials
• if the student fails to attend more than a specified number of classes in a row
• if the student has no communication with you after enrolment in the course.

Student awareness

Another factor is whether the student has knowledge of the course requirements, and the cost and duration of the course.

You must provide students with information before enrolment, including about:

• tuition fees and other fees that apply to the course
• their rights and obligations when enrolling in a course and applying for a VET Student Loan.

Study load

Another factor is if the student is enrolled in more than one course. If the number of enrolments and associated course loads would make successful completion of a course by the student impossible or highly improbable, this suggests the student is not genuine.

In determining whether the number of enrolments and associated course loads would make successful completion of a course impossible or improbable, consider:

• whether the student is studying full-time or part-time
• the number of contact hours for the course, including practicums
• the nature of the assessments for the courses
• a student’s employment commitments
• any family or caring responsibilities.

The above indicators are provided for guidance only and do not limit us from considering other relevant factors.

Communication

Adequate communication between you and your students is essential in demonstrating that a student is a genuine student. You should encourage students to maintain up-to-date contact details.

When determining whether a student is a genuine student, consider whether:

• the student has provided up-to-date contact details to enable us to contact them and verify their enrolment in the course
• when required to do so, the student has communicated their agreement for the department to continue to use VSL to pay tuition fees for the course.

Before enrolling a student in an approved course, you should inform students about the importance of notifying you of any change of contact details.

Cancelling a student’s enrolment

It is open to you to use your discretion whether to cancel a student’s enrolment in a course or part of a course for poor attendance or insufficient progress. Where possible, you should consider exercising your discretion to cancel the student’s enrolment on or before the relevant census day.

If you cancel a student’s enrolment (for any reason) after the census day, you must comply with the correct processes [part 40.5]. This includes giving students 28 days to initiate grievance procedures before the cancellation takes final effect.

Legislation: Act s 20(c)(ii), s 71(3)(b), Rules s 5(2), s 98(1), 98(2)(n)