Australian Government failure and the VET FEE-HELP loan programme

Abstract

PurposeIn an effort to boost participation in vocational education and training (VET), in 2009, the Australian Government launched its VET FEE-HELP income-contingent loan programme for VET students. The programme was terminated in 2016 following numerous failed attempts to arrest its escalating costs and improve its performance. In an effort to shed light on the failure of the VET FEE-HELP programme, in this paper, the authors offer estimates of the aggregate costs involved and the quantum of graduates.Design/methodology/approachIn this paper, the authors examined the VET FEE-HELP programme through the analytical lens offered by Marsh and McConnell’s (2010) framework, which offered a broad, “big-picture” view covering three dimensions of policy success or failure.FindingsBy identifying the causes of the failure, the authors concluded that the features of the scheme designed to improve accessibility of VET also allowed for exploitative behaviour on the part of VET providers, causing deterioration in training quality and leading to a substantial amount of wasteful public expenditure.Originality/valueThe authors seek to illuminate the demise of the hitherto neglected programme to contribute towards the literature on Australian Government failure.