Most received no qualifications but were still expected to pay back loans which many didn't even know they had.
Many of these debts will now be wiped by new federal legislation, introduced on the first of January this year.
The minister for skills and vocational education Michaelia Cash insists all those led on by unscrupulous operators will have their debts wiped.
Eight thousand students have so far been reimbursed as part of the redress scheme.
Currently, the total bill is in excess of 90 million dollars, and is expected to rise as thousands more students apply.
