Australian Investigation of ‘Corrupt’ Colleges

Australia’s growing status as a study-abroad destination may be tempting shady operators to try to get a piece of the action there. 

Australian newspaper The Age reports today that the government is facing pressure to crack down on “corrupt training colleges that are making millions of dollars a year exploiting foreign students by breaching immigration and education laws.”

The Age quotes unnamed government sources as saying that some colleges are “fleecing” students by using forged certificates and engaging in immigration fraud. The newspaper also charges that government agencies are “lackadaisical” in checking student credentials and that some students are using scams the gain permanent residency there.

There’s more:

Government departments have been inundated with letters of complaint from students alleging illegal activity and threatening or unethical behaviour by college operators.

They allege colleges are offering qualifications for under-the-counter payments; that students are being bullied into making advance payments for semesters or face fines; and that students are being fined up to $250 for being late for classes or for submitting assignments late.

Students also allege colleges are charging them for subject results and threatening to have them deported if they ask to switch colleges. Some colleges are allegedly charging students thousands of dollars to be formally allowed to leave.

International education is a major component of the Australian economy, bringing $13.7 billion Australian (just under $10 billion U.S.) into the country each year. With the economy struggling in Australia as elsewhere, the incentive to scam international students seems to be growing.

“It's out of control,” one unnamed official told The Age. “In the current economic climate … I think people are fairly reticent to try to fiddle with this huge earner in Australia.”

Despite the allegations, the Australian Council for Private Education and Training, an industry body, insists that the “vast majority” of the country’s private education and training providers operate ethically.

Australia’s Growth in International Education

Despite a slowing world economy, Australia continues to be a destination for study abroaders worldwide — growing by more than 20 percent in 2008.

Education minister Julia Gillard told The Australian newspaper that 543,898 international students attended colleges, universities and institutes in Australia last year, making education the country’s third largest export. The industry contributed just over $9 billion US to the nation’s economy.

The Australian reported the Aussie universities are particularly inviting to Asian students and that the falling Australian dollar has made study abroad there more affordable in the past year. Indeed, institutions in Australia saw nearly 55 percent more students from India in 2008 over 2007, with the total number reaching 97,035 for the year.

The 127,276 students from China made up the largest single group of internationals in Australia.

Whether the increases will hold as the recession deepens in 2009 still isn’t known, but education officials believe their industry may weather the downturn more resiliently than most.