Education Provider "REFUND LAW" introduced - What does this mean to you?

Summary

In this video, Kang, an online visa consultant, discusses recent updates to Australia's education sector and its potential impact on international students. A new law mandates refunds for unspent tuition fees if education providers or students default, which signals the financial instability of many private institutions. Kang highlights the rising costs of student visas, caps on international student enrollments, and the closure of 'ghost colleges.' He warns international students to avoid enrolling in vocational courses (VET) as many providers are expected to go bankrupt, potentially leaving students without refunds.

Takeaways

• 📚 The video provides updates on the education and immigration sectors, specifically concerning visa applications and legislation changes.
• 🤖 The host mentions that new legislation could signal the collapse of many private educational institutions in Australia.
• 💰 A significant increase in visa fees for international students has been observed, now reaching $1,600, compared to $700 previously.
• 📉 The potential default of many education providers, particularly those offering vocational courses (VET), is expected due to financial instability.
• ⚖️ The new law outlines refund procedures for students when an education provider defaults or shuts down.
• 💸 If a student defaults by not attending their course, refunds will still be calculated based on unspent tuition fees, which the host finds unfair.
• 📊 The legislation introduces a method to calculate refunds in cases of both provider and student defaults, with clear definitions for 'unspent' fees.
• 🏫 The host advises against enrolling in vocational education courses during this period due to the financial instability of many providers.
• 👻 The video highlights the existence of 'ghost colleges,' institutions that have been operating but may now face closure under new regulations.
• ⏳ The host believes that the legal and financial processes involved in getting refunds from defaulted institutions will be slow and complex, with no guarantee of reimbursement.

Q & A

What is the main topic of the video?

The main topic of the video is the impact of recent legislative changes on Australia's international education sector, particularly private institutions, and the potential collapse of many education providers due to increased visa fees and other regulations.

Who is the speaker in the video?

The speaker is Kang, an online YouTube visa consultant, providing insights into immigration and education laws affecting international students in Australia.

What recent law is being discussed in the video?

The video discusses a recent law called the 'Education Service and Overseas Student Calculation of Refund Instrument 2024,' which outlines the procedures for calculating refunds for unspent tuition fees in case of provider or student defaults.

What is the concern about private education institutions in Australia?

The concern is that many private education institutions, especially those providing vocational education and training (VET) courses, may go bankrupt due to rising costs, including increased student visa fees and caps on international students.

How have student visa fees changed recently?

Student visa fees have increased significantly from around $700 to $1,600, which is discouraging international students, particularly those interested in English language courses.

What is a 'ghost college' mentioned in the video?

A 'ghost college' refers to education institutions that exist mainly to exploit student visa opportunities without delivering quality education, many of which have been targeted and closed down by recent regulations.

What does the refund calculation law say about provider defaults?

The law mandates that if an education provider fails to deliver a course, the institution must calculate and refund unspent tuition fees to students, even if the provider goes bankrupt.

What is the speaker's concern about the refund process?

The speaker is concerned that if a provider goes bankrupt, calculating refunds may be futile because the institution might not have any funds left to reimburse students, leading to lengthy legal processes with little chance of recovering the money.

What advice does the speaker offer to prospective international students?

The speaker advises prospective international students to avoid applying for vocational education and training (VET) courses during this period of uncertainty, as many providers may go bankrupt, making it difficult to get refunds.

What factors are contributing to the challenges facing Australia's international education sector?

Several factors are contributing to the challenges, including the increased visa fees, the introduction of caps on international students, changes in risk levels for institutions, and the new 'genuine student' test requirements.

Outlines

00:00

🎓 Education Sector Concerns: Ghost Colleges and Student Visa Costs

The video begins with the host, Kang, discussing issues within the Australian education sector, focusing on a legislative update that impacts both educational institutions and international students. He highlights concerns about 'ghost colleges,' fraudulent institutions targeting international students, and the rising cost of student visas. The video emphasizes that many private institutions, particularly those offering vocational education and training (VET) courses, are at risk of collapse due to these changes, creating uncertainty for future students.

05:02

📉 Financial Impact: Refunds and Institutional Defaults

Kang delves into the specifics of the legislation, explaining the calculation of refunds for unspent tuition fees if an institution fails to fulfill its obligations. The legislation is designed to protect students by ensuring they receive refunds if schools default. However, Kang points out the absurdity of some situations where students might not fulfill their obligations and still expect refunds. He also highlights the potential risk of private institutions going bankrupt, making it unlikely for students to recover their money, even if the law mandates refunds.

10:04

⚠️ Warning for Future Students: Avoid VET Courses

In the final part of the video, Kang offers a stark warning to potential international students, advising them to avoid enrolling in VET courses. He explains that with so many private institutions at risk of going bankrupt, students face a high likelihood of losing their tuition fees. Kang concludes by encouraging viewers to share their thoughts and highlights the uncertain future of Australia's private education sector due to the changing laws and economic pressures.

Keywords

💡Visa Consultant

A Visa Consultant is a professional who provides guidance and advice on immigration processes, particularly visa applications. In the video, the speaker identifies himself as a 'YouTube Visa Consultant,' offering viewers information about immigration, specifically for students and educational purposes.

💡Private Institutions

Private institutions refer to non-government-funded schools and education providers that offer vocational and training courses, such as cookery or mechanics. In the video, the speaker discusses how many of these institutions are facing financial collapse due to rising costs and regulatory changes, impacting international students.

💡VET Courses

VET (Vocational Education and Training) courses are designed to teach skills for specific trades, such as cookery or mechanics. The video mentions that these courses are commonly offered by private institutions that are struggling due to changes in immigration and education laws, leading to potential shutdowns.

💡Genuine Student Test

The Genuine Student Test is a process used by immigration authorities to assess whether a visa applicant genuinely intends to study in the country. The video references changes in this test as part of a broader set of regulatory shifts affecting international students and their ability to secure visas.

💡Provider Default

Provider Default occurs when an education provider, such as a school or training center, fails to deliver the promised course, usually due to financial failure. In the video, the speaker highlights that many private institutions may face 'default' and be unable to refund students, creating significant risks for international students.

💡Student Visa Fees

Student Visa Fees are the costs associated with applying for a visa to study in a foreign country. The video discusses how these fees have increased significantly over time, from $300 to $1,600, making it more expensive for international students to apply and adding financial pressure on both students and educational providers.

💡Refund Calculation

Refund Calculation refers to the legal process of determining how much tuition money should be returned to a student if an education provider fails to deliver its services. The video explains that new legislation outlines specific methods for calculating unspent tuition fees in cases where institutions default or students fail to attend.

💡Ghost Colleges

Ghost Colleges are educational institutions that exist in name but provide little to no real instruction or value, often serving as fronts for visa fraud or other scams. The video refers to the closing of 150 such 'ghost colleges' and warns that many more may go bankrupt as regulations tighten.

💡External Administration

External Administration is a legal process where an insolvent company is managed by an external party to help settle debts and liabilities. The video mentions that many education providers facing financial trouble may enter external administration, making it difficult for students to recover tuition refunds.

💡Cap on International Students

A cap on international students is a regulatory limit on the number of foreign students allowed to enroll in educational institutions. The video discusses how these caps, along with increased visa fees and risk assessments, are contributing to the instability of private institutions, especially those relying on foreign student enrollments.

Highlights

Introduction to the speaker, Kang, who is an online YouTube visa consultant.

Discussion about recent legislation related to education, especially affecting international students and private education providers.

New direction (Directive 107) impacts genuine student tests and risk levels of educational institutions, changing the landscape for international students.

Capping the number of international students leads to chaos, especially affecting private institutions.

Visa fees for student visas have drastically increased from $700 to $1600, making it more expensive for international students.

Concerns about the potential collapse of many private education institutions due to rising costs and other regulatory pressures.

Education Service and Overseas Student Refund Instrument 2024 outlines the process for calculating refunds for unspent tuition fees.

Clarification that education providers must refund students if they fail to deliver the promised services or courses.

If an education provider goes bankrupt or shuts down, it is still legally obligated to calculate how much refund is owed, though it may not be able to pay.

The speaker raises concerns about the practicality of refunds if an institution has gone bust and has no funds left.

Students who default by not attending courses may still be eligible for refunds, although this seems illogical to the speaker.

Visa refusal cases will follow specific refund calculation methods as outlined in the updated legislation.

The speaker predicts that many more private institutions, especially those offering vocational education (VET courses), will go bankrupt.

The advice to international students: avoid applying for vocational education courses during this period due to the risk of provider collapse.

Final call for audience feedback and comments on the potential collapse of private education providers, along with a reminder to subscribe to the channel for future updates.

Transcripts

welcome to channel give insight to the

US Visa

[Music]

system good day everyone my name is Kang

your online YouTube Visa consultant are

you interested in IM migrate to

Australia why don't you consider to

subscribe to my channel and turn on the

Bell on the side so once of all the

updates and news you'll be the first one

getting all the

side all right let's have a uh

legislation a law update uh it's not

directly with regards to the immigration

law uh but to the education sector uh

now it's a I didn't I didn't thought

about too much about this uh piece of

legislation but uh I after reading it I

thought well it's a signed it's a sign

that shows the potential default of

Education in institutions are coming up

so as you have clicked into the uh

thumbnail you may well the thumbnail

means something to you already as I said

uh uh with all the ghost colleges

hunting for the past 12 month plus uh it

actually you know we've seen how they um

uh the the new uh the the priority uh

the uh direct directive uh uh

107 uh Direction number 107 and the

genuine student tests and they are

changing the risk level of different

institutions now they put on cap on

International students obviously that

will cause chaos now apart from the

public university that we have known

that there are 44 45 of them uh there

are 4,000 about 4,000 private ins 3,900

something uh private institution that

delivers well they supposedly delivering

uh so called the vet courses that's all

the uh traits courses like cookery uh uh

mechanics and all the kind of stuff and

plus Al also the Ed Course the English

language providers now they all suffers

why because also they also jacked up the

student visa costs from uh used to be

about 700 bucks that was a lot cuz I I

still record 10 years ago what it was

only

$300 uh now it's $1,600

now no one's going to come and study

English and pay the uh Visa fees for

$1600 right anyway that will contribute

to the potential collapse and uh

bankrupt or shutting down of a lot of

private institutions so it's a sign

because we are actually seeing this on

the first of October now well this is

the briefing but the detail of the law

is pretty dry and boring I don't want to

go to the actual uh see that piece of

legislation it was actually dated back

last week but uh it's currently enforced

it's the first day of October it says

Education Service and overseas student

calculation of refund now when do you

require the refund obviously is either

the goods or services is not uh doesn't

deliver then obviously you need you you

want to get refund so they put it in the

law to enforce uh a

potential uh you know whatever things

happened so obviously refund from who so

payer must be students right the

customers and refund the refunder must

be the education institutions when are

they required by law to refund that's

basically what this law is all about but

what does it tell us that means a lot of

shit's going to happen happen so

the education Provider by law well if

they don't refund obviously that's

against the law and they will be

penalized so this will contribute a more

of I don't know I don't want to say this

but it's it's a killing spree uh for the

International Education sector

especially for the private education

sector uh where um all those vet courses

providers it's just

not the good thing but again I'm here to

provide this information for you to

actually digest and have know what's

actually happening so let's go into the

briefing rather than go into the boring

law by itself so the briefing actually

says this let's have let me have a

reader it says Education Service of

overseas students calculation refund

instrument 2024 outline procedure

calculation refund of unspent unspent

now how do you define unspent so they

the actual law does have those

calculations so if we scroll down it uh

it says uh weekly what is a weekly and

how do you C see that fun see that

function okay so that's how they

calculate whatever the fee that should

be so they actually Define how you

calculate a fee and how you how they

Define unspent tuition fees under this

piece of legislation uh this instrument

provide a Clarity of refund process in

case of Education provider all student

do not fulfill their obligation

obviously obviously student now how

would student not fulfill their

obligation well they pay and they did

not go well that's their problem isn't

it uh so I'm not too sure if you pay an

in tuition fee and if you don't go can

you get a refund that's just awkward I

mean that's waste of resources isn't it

but anyhow they have actually but I

think I think the true intention of this

instrument is actually telling us that

there's it's going to be numbers of

private institution they're going to go

under right all right okay so let's have

a look at the key detail here the

provider default well here we go

provider means the education providers

that's the schools if the education

provider fails commands complete of

course the instrument set out how to

calculate refund based on the unspent

portion of the tution fees now I'm going

to talk about this now if they go under

that means they don't have money anymore

and they already shut down how are they

going to how are they going to well I

think what they what they're doing doing

here by law even if they collapse okay

they they went busted okay uh by law

they are still required to calculate how

much they still owe to the customers

however I don't think the customer or

the student will actually get the money

back if they go default right anyway and

student go default now that's strange

that means student doesn't even go to

school uh in instance where student go

default destroy without um

comp complant return agreement that

means they just go away they just went

off the refunds calculate according to

the prescribed method that's awkward I

mean how can you do that I mean you

committed to come to school and you're

the one didn't come to school and the

school still need to refund that just

doesn't make any sense now Visa refus

obviously that means they didn't get a

Visa the guance specified a method of

calculate refund of student visa

application is refused uh so the update

instrument replaced 2014 version so

there was something back then I think

they just make it more uh will clarify

some of the ambiguity there uh back in

the 2014's version uring refund

calculation are fair well who knows I

mean how can this be fair now first of

all let me have a little little talk

now again if the provider goes in

default that means they're bustard okay

um that means they don't have money

anymore now how are you going to track

them down uh and they could just declare

and you know under ad me external

Administration or bankruptcy and things

like that uh and even if you you know go

through the

procedures uh and calculate probably

going to going back to the creditors

that means the investors or owner of the

business to actually get a money but

that is going to be a

lengthy uh C

uh procedures you know

jurisdictional you know civil procedure

not jurisdiction civil procedures that's

going to take a while okay and until the

end probably you still get nothing back

because in fact the the the the provider

went default that means they they're

busted they gone you know they're shut

down they don't have anything anymore

how do you get the money back so why on

Earth do we need to still calculate all

these things I don't know and the other

thing is student gos default that

doesn't make any sense sense if you pay

the money you want to come to course and

you just did not come without any

written agreement that's what it says uh

and the school still requireed to refund

the student yeah that's not fair isn't

it I I don't know I don't know how this

actually will work but from what it says

it just doesn't make any sense anyhow I

think the main thing that we should get

here is that uh due to all the changes

of law impact International Education

sector uh the risk level of countries

providers genu student test direct

duration number

107 uh cap on international student

increase of student visa fees now what

that all contribute and what we have

seen today is that they will

be oh I don't know there has been 150

so-called ghost colleges have been

called but I think and I suspect there

going to be hundreds and hundreds more

these private institution will actually

go under that means default that means

bankrupt that means external ad me that

means no money to give out so again the

message you here is during this period

of time it's going to go for a while uh

just don't apply any vet causes cuz

you're getting the trouble you know you

don't want to deal with a potential

provider that goes Buster that goes into

default and asking for re I don't think

you get a refund back anyhow anyway what

are your thought why don't you leave

your comment right down below and I see

you next video goodbye