Government announces major changes to vocational student loans scheme

The Education Minister says the new program will return integrity to the sector and save taxpayers billions of dollars.

The Prime Minister Malcolm Turnbull takes a photo after meeting with vocational education and training participants in Sydney. Source: AAP

Tougher restrictions on eligible private college courses, loan caps and student engagement requirements are among the changes due to come into force from mid-2017.

Providers will also be banned from using recruitment brokers or directly soliciting prospective students.

Previously, it was found, that some students had been persuaded to enrol in courses by the offer of free iPads and laptop computers.

Some colleges were found to be charging up to 30-thousand dollars for courses - leaving students with considerable debt.