Australian High Commission
New Delhi
India, Bhutan

PA2409: Australia continues to react strongly to protect the interests of Indian students

PA/24/09                                                                                        30 July 2009

Australia continues to react strongly to protect the interests of Indian students

Australia is continuing to take swift and comprehensive action to address the challenges faced by international students in our cities.

First and foremost we are protecting the interests and welfare of international students.
We have strong measures in place in the event of college closures.

Australia’s Deputy Prime Minister said on 29 July: "We have a comprehensive safety net for international students. If they are enrolled at a college that closes, then we have a guarantee that we will find them a comparable place at another provider, or if that is not possible, then their fees will be refunded," she said.

The Government held a meeting in Sydney for all students affected by the closure of Sterling College (see attachment).

Australia is also cracking down on scams and fraudulent activity in the education sector. We take allegations of fraud in the student visa and permanent residence caseloads very seriously. A major operation is underway in relation to alleged fraudulent references. Under Australia's criminal and migration legislation there are serious penalties for the offence of forgery and false papers.

We are continuing to reach out to students through hotlines, consultative mechanisms and direct contact, ensuring their voices are heard. On 12 June the Deputy Prime Minister announced a hotline for students to raise concerns, anonymously if they wish. And on 27 July the Deputy Prime Minister called for nominations for the International Student Roundtable which will take place on 14 and 15 September. Participants will have the opportunity to discuss issues affecting their experience in Australia and to put forward ideas on how to address their concerns.

Australia’s police forces have already reduced the incidence of attacks of students. Their important work continues, including enhanced outreach activities with international students.

High Commissioner John McCarthy said on 29 July: “There is no doubt that further challenges remain, but I am convinced that we are on the right path.”

He added that “these are complex problems and will require complex solutions, but there is no doubt that the very top level of the Australian Government is focused on protecting the interests of international students.”

Attachment: The Australian Government acts to protect student interests after the closure of a private education college

In recent days, there have been a number of media reports dealing with the closure of a private education institution in Sydney Australia, Sterling College Pty Ltd. Here are the facts:

  • Sterling College Pty Ltd located in Market Street, Sydney, New South Wales is a Registered Training Organisation (RTO) that specialised in job oriented, professional courses such as Information Technology, English Language, Business, Financial Services, Hospitality, Commercial Cookery and Industry Certification. 
  • Sterling College is accredited as a RTO by NSW Vocational Education & Training Accreditation Board (VETAB).
  • Sterling College Pty Ltd has operated since 2001;
  • Sterling College Pty Ltd ceased operating on 28 July 2009;
  • The reason for the closure was the financial position of the College and its inability to continue to meet the costs of operating its business;
  • 844 students will be affected by the closure (603 currently studying at the College with the remainder approved but yet to undertake study). Of this total, 604 enrolments are from India;
  • Enrolments were distributed evenly across courses in hospitality, community welfare and hairdressing.
  • The Australian Government has already initiated these protections in the case of Sterling College:
  • There was a meeting for all affected students at midday on Thursday 30 July 2009 in Sydney to outline the situation and the implications for students.
  • The meeting was chaired by the New South Wales State Manager and Deputy State Manager of the Australian Department of Education. Officers of the Australian Department of Education who have responsibility for administering the Education Services for Overseas Students Act (ESOS), the Australian Department of Immigration as well as the Australian Council for Private Education and Training (ACPET) attended the meeting. The Indian Consul-General in Sydney also attended.
  • All affected students were provided with information outlining their entitlements and responsibilities so that they are fully aware of the process that will be undertaken to ensure that they are able to continue their studies and can make informed choices.
  • For those students who were unable to attend the meeting, ACPET as the Tuition Assurance Scheme (TAS) administrator, will contact them to apprise them of the situation, their entitlements and the various options available to them.
  • Students may be provided information and advice by external parties about the best options available to them. In such cases students may find it prudent to check the information with official sources to ascertain the reliability of the information.
  • The Australian Department of Education is also taking steps to activate the Tuition Assurance Scheme arrangements operated by ACPET and, where possible, to ensure that students are provided with up to date academic transcripts from the College.
  • The ESOS Assurance Fund has also been briefed on the closure. The Australian Department of Education will oversee the process of placing students into a suitable alternative course. Failing that they will be able to call on the ESOS Assurance Fund to seek a refund.
  • The Australian Department of Immigration appreciates that this situation is beyond the control of the students and that they may be concerned about their visa status; students in Australia who have concerns about their visa status can contact that Department on 131 881.

The Australian High Commissioner, Mr John McCarthy, said “as in any closure of this type, the Australian Government’s primary concern is the welfare of the affected students.”

“The Australian Government’s legislation (the ESOS Act) that governs education services to international students provides a comprehensive suite of protections for students in the event of a provider default. These guarantee that all eligible students are able to complete their studies with minimal disruption.”

The High Commissioner added that “The Australian Government has comprehensive measures to deal with any closures of education institutions that offer services to international students. “I urge all Indian students who have been affected by the closure of Sterling College to follow the advice of the Australian Government’s officials.”

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