Careers Australia Collapses, Cancels Classes for 15,000 Students

One of Australia's largest vocational education providers, Careers Australia, has gone into voluntary administration, leaving many uncertain about the future of their courses.

Last night, ABC's 7.30 program obtained a letter that had been sent to all staff members explaining they would be stood down effective May 25, citing insufficient funds to continue trading on a "'business as usual' basis."

At around 10.45pm, a text was then sent out to their 15,000 students, reading, "All activities of Careers Australia Group are suspended. No classes, no workplaces effective immediately. Further information will be provided."

One student, Jess Bell, who had finished a Diploma of Counselling through CA, was only four assignments away from completing a second diploma in Community Services.

"There has been nothing from Careers Australia except the text message that was sent out at 10:44pm that had little information on what was going on," Bell told Student Edge.

"I had to Google [it] to find out what the text message meant."

It was only then that she found out CA had gone into voluntary administration. The future of her second diploma was suddenly uncertain.

"I've had no contact or communication from the administrators or Careers Australia yet. It's frustrating," Bell explained.

Bell is one of many students who are desperately trying to get in contact with someone for an explanation.

I've worked so hard on bettering my current situation. Chased a dream and now it's all been thrown away? #careersaustralia

— Lorna Dunne (@TheLornstarr) May 25, 2017

The Department of Education explained that students can still study, but it's unclear at this stage how that will work.

Careers Australia students can study until further administrators advice. If concerned call TAFE Directors Australia 02 9217 3180

— Eduspokesperson (@Eduspokesperson) May 25, 2017

Careers Australia missed out on being included in the VET Scheme, which would allow the provider to receive generous federal grants. It is said this was due to previous scandals, like their admission that they broke consumer law.

Voluntary administration is essentially the process where an independent person assesses a failing business to see what options are viable to save the business. In reality, only 26 per cent of businesses are saved after they go under voluntary administration.

We reached out to Careers Australia for comment, but did not receive a response in time for publication.

If you're enrolled in a course with Careers Australia, you can call TAFE Directors Australia (02) 9217 3180 or the Department of Education and Training on 1800 020 108.

Photo: Facebook