On January 21st, the Tuition Protection Service (TPS) conducted a seminar for students impacted by the closure of a major provider, aiming to guide them through alternative pathways for continuing their studies. While previous arrangements had primarily directed students to a new, single provider, the seminar introduced new options for alternative providers.
However, as The Koala has learned, issues have emerged when students and providers attempted to follow the process outlined in the seminar. Upon checking the “TPS Online” system, providers found that none, including those expected to be listed, were available as options. This created confusion and frustration among affected students, who had been given instructions that they were unable to act upon.
One provider the Koala spoke to was of the belief that provider lists had yet to be uploaded and that providers could proceed with offering students places and start the Confirmation of Enrolment (CoE) process. Additionally, in their webinar, the TPS mentioned that academic transcripts were still being uploaded into the Unique Student Identifier (USI) system this week.
This response highlights potential flaws in the process when a provider may close. It appears communications were sent out with instructions, yet the system was not ready to accommodate them, leaving students in questioning what to do. Furthermore, the decision to upload ELICOS standalone provider transcripts into the USI system suggests a lack of understanding of sector-specific requirements.
As communicated to The Koala, a broader concern is being raised by providers and agents. The TPS was initially established following the GEOS collapse to protect Australia’s education reputation and ensure student agency, and efficient placement or refunds for impacted students. However, the suggestion from many that Koala has spoken with is that the TPS appears to be prioritising protecting its fund over its primary responsibility—safeguarding students and Australia’s global reputation.
As one example, one provider raised with the Koala the turnaround time. “Even accounting for holiday delays, action should have been taken by the TPS by January 6th at the latest, rather than waiting until January 20th. It is clear that TPS’s handling of this crisis is “falling short of expectations”, they said.
The Koala understands an email went to providers regarding the updating of lists this past Friday, 31 January, with a response required by 3 February 2025.
Another the Koala spoke to mentioned that the ESOS Act actually requires that, where it is clear to the TPS that the defaulting provider can’t meet its obligations to fund transfers to alternative providers or offer refunds, it should start providing alternative course options for impacted students within the first two weeks of the closure. They also pointed out that students are meant to confirm acceptance of an alternative course within 30 days of the provider default period. In the case of the default that occurred last year, that was the 21st of January. Students can’t do that if the TPS haven’t provided them with an offer.
As the situation develops, stakeholders await further clarity on the next steps. With a large number of students affected, including students under the agent of 18, timely and transparent communication is crucial to maintaining trust in the education sector and upholding the principles of the ESOS Act.
In response, a spokesperson for the Department of Education says “TPS support will be available to all eligible international students affected by the International House closure whose student obligations have not been met.”
“TPS is communicating with affected students to assist them with alternative education courses as well as tuition fee refunds.
“Students are encouraged to contact support@tps.gov.au if they have any questions about finding an alternative course or advice on whether they are eligible for a tuition fee refund.
“Information is also available for students and their education agents at TPS.gov.au” they said.
It appears that the timing of the above events is central to frustrations that may be felt in the sector.
The administrator made the decision to cease operation on Monday, 9 December. The Koala has learned that a request was put to the TPS by the administrator to extend the obligation period for IH Sydney to 20 January 2025. On 13 January 2025, the TPS began assisting those eligible students owed a refund of tuition fees due to visa refusals, on advice from the administrator that they would be unable to meet their obligations to those students. The TPS began assisting all other students on Tuesday 21 January 2025. On 21 January, students were informed that the TPS was developing a list of suitable alternative courses and providers, which would be made available once all validation checks had been completed. This list, The Koala is assured, will be made available to students on TPS Online as soon as practicable.
It is now almost two months since the cessation of operations (ceasing of classes for students), and students are still awaiting information on where they may be able to study.
In the current environment, many in the sector fear the coming year will be a busy time for the TPS, which has a vital role in what may sadly be an increasing number of provider defaults (aka closures). As these may occur, affected students should have peace of mind that the existing safety net should be efficient and transparent. The sector relies on it.
