Almost 500 Diplomas Will No Longer Receive Government Funding

The Turnbull government has slashed the amount of vocational loans available to those looking into gaining diploma qualifications.

Currently, more than 800 vocational courses are eligible for government loans. Under the redesigned scheme, only 347 are expected to receive financial support.

Some of the diplomas which no longer qualify for government subsidies include: fitness coaching, fashion styling, art therapy, musical theatre, journalism, jewellery design, mind body medicine, clinical hypnotherapy and Christian counselling.

Around 95 per cent of the total 144,000 students in the current VET FEE-HELP scheme are, in fact, studying courses on the new approved list. However, about 7000 students will be excluded under the new arrangements.

At the helm of this entire overhaul and redesign is Educational Minister Simon Birmingham.

"Currently there are far too many courses that are being subsidised that are used simply to boost enrolments or provide 'lifestyle' choices but don't lead to work," he said.

"VET Student Loans will only support legitimate students to undertake worthwhile and value-for-money courses at quality training providers."

There appears to be a clear divide in what is considered a "worthwhile" course.

Birmingham said all agriculture, engineering, information technology and natural and physical science courses would remain on the approved list.

Under the new scheme there are loan caps on different courses.

Students in landscape design, horticulture and engineering will be able to borrow up to $15,000 and up to $10,000 will be available for those in nursing, early childhood education, building and construction, beauty therapy and information technology. Up to $5,000 will be granted for people doing business and accounting diplomas.

There's a small window of opportunity for vocational education providers to state their case. They have the chance to explain why any rejected course should continue to be eligible for loans. However, this will involve providing substantial proof that the course delivers strong job outcomes.

The changes are expected to reduce the level of debt in the government's Higher Education Loan Program.

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