Vocational students will get a dedicated advocate to protect their interests once a new system of taxpayer-funded loans begins.
The government quietly announced the establishment of a VET student loans ombudsman when it put legislation for an overhaul of the loans program to parliament on Thursday.
The Greens secured the promise of an ombudsman, which the minor party says the system badly needs.
"This is an important win that will help to protect vulnerable students from exploitation in the future," Greens education spokeswoman Sarah Hanson-Young told AAP.
"The rampant rorting of the VET system has been an extraordinary example of failed privatisation and, unfortunately, it's the students who have suffered the consequences."
The government says the only way to deal with the rorts and dodgy providers is to scrap the existing loans system and start again.
Loans to vocational students have blown out from $325 million in 2012 to $2.9 billion in 2015.
