Private schools accused of scam over course loans
The Tertiary Education Commission is investigating allegations that some private trainers are offering cash kickbacks to elderly Chinese who take out student loans and enrol for English language courses.
StudyLink, which administers loan payments and pays the fees to the institution, has also started an inquiry. Students receive the money and taxpayers foot the bill.
An Auckland-based Chinese woman told The Dominion Post she knew of a student who was offered a $1200 payment. One Auckland private training establishment allegedly offered a $400 "grant".
Taxpayers were providing loans totalling thousands of dollars that were unlikely to be repaid, said Richard Goodall, president of AIS St Helens in Auckland, which is not involved in the practice.
Pensioners collectively owe $85 million in student loan debt. Many earn less than the loan repayment threshold, and when they die, the debt is written off.
"A lot of these senior classes aren't very demanding. It's to help them with shopping, it's more of a social outlet. We believe it's an unethical practice. It doesn't give the industry a good name," Dr Goodall said.
National MP Pansy Wong said she had received several complaints. "These trainers are targeting older people, particularly migrants seeking to learn English, who are taking on heavy student loans without understanding exactly what the implications will be." There were more cost-effective ways of catering for their language needs, she said.
Dr Goodall said the practice was prevalent in Auckland where language schools competed fiercely for students. He had raised concerns with StudyLink and Work and Income but officials rejected his suggestion that elderly student borrowers should have a loan guarantor, because they could not discriminate on age.
Commission spokeswoman Susan Shipley would not comment on the investigation but if the allegations were proven, access to student loans for the courses could be stopped.
Any citizen, permanent resident or refugee enrolled in a course approved by the commision could apply for a student loan. Tuition fees are paid directly to institutions.
Private trainers not receiving government tuition subsidies can charge market rates for courses, but students can borrow only up to $6500 from the loan scheme. Other trainers can charge up to $4100 for a fulltime English language course which is the maximum students can borrow for their fees.
Source: http://www.stuff.co.nz/stuff/0,2106,3631214a11,00.html
StudyLink, which administers loan payments and pays the fees to the institution, has also started an inquiry. Students receive the money and taxpayers foot the bill.
An Auckland-based Chinese woman told The Dominion Post she knew of a student who was offered a $1200 payment. One Auckland private training establishment allegedly offered a $400 "grant".
Taxpayers were providing loans totalling thousands of dollars that were unlikely to be repaid, said Richard Goodall, president of AIS St Helens in Auckland, which is not involved in the practice.
Pensioners collectively owe $85 million in student loan debt. Many earn less than the loan repayment threshold, and when they die, the debt is written off.
"A lot of these senior classes aren't very demanding. It's to help them with shopping, it's more of a social outlet. We believe it's an unethical practice. It doesn't give the industry a good name," Dr Goodall said.
National MP Pansy Wong said she had received several complaints. "These trainers are targeting older people, particularly migrants seeking to learn English, who are taking on heavy student loans without understanding exactly what the implications will be." There were more cost-effective ways of catering for their language needs, she said.
Dr Goodall said the practice was prevalent in Auckland where language schools competed fiercely for students. He had raised concerns with StudyLink and Work and Income but officials rejected his suggestion that elderly student borrowers should have a loan guarantor, because they could not discriminate on age.
Commission spokeswoman Susan Shipley would not comment on the investigation but if the allegations were proven, access to student loans for the courses could be stopped.
Any citizen, permanent resident or refugee enrolled in a course approved by the commision could apply for a student loan. Tuition fees are paid directly to institutions.
Private trainers not receiving government tuition subsidies can charge market rates for courses, but students can borrow only up to $6500 from the loan scheme. Other trainers can charge up to $4100 for a fulltime English language course which is the maximum students can borrow for their fees.
Source: http://www.stuff.co.nz/stuff/0,2106,3631214a11,00.html
posted by bradley at 8:57 PM
1 Comments:
Hey this is awesome news for the students for student loan offer announce. i just say this best time to get loan for every student and get complete his study and get a good job in future.thank u so much sharing for the awesome article.
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