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A group of Karen refugees in Bendigo is seeking to cancel a $16,800 debt they each owe to a training provider they say tricked them into signing up to a course in early childhood education.
Complaints about the course include inconsistencies in accreditation, unrealistic expectations given the language barrier and disclosure about course fees.
Queensland-based company Churchill Education is the training provider administering the diploma.
Speaking on behalf of the group, Karen resident A Pwint, 42, said Karen residents signed enrolment forms for a diploma in December on the understanding that the course was free.
Mr Pwint said mid-way through the course they were told they had to pay a government VET FEE-HELP loan of $16,800 each.
He said he earned less than $40,000 a year and had to provide for three children.
"How can we pay that amount," Mr Pwint said.
Bendigo Neighbourhood Hub, based in Strathdale, is assisting about 50 Karen residents to withdraw from the diploma and have the fee reversed.
About 40 Karen residents attended a meeting on Sunday morning held by Bendigo Neighbourhood Hub coordinator Angelique Whitehouse, who is acting as their advocate.
Ms Whitehouse said students were given either misleading or no information about the course, could not speak English and did not know what subjects they were studying.
She said the course involved writing tasks, which some students could not reasonably be expected to complete.
She said some did not know the course was in early childhood education, but agreed to do it because they were told it would help them gain employment.
At Sunday's meeting, Ms Whitehouse told the group she was seeking legal advice and had submitted complaints to the Australian Skills Quality Authority and the Department of Education.
A spokesperson for Churchill Education said third party supplier Treble J Enterprises was responsible for signing students up to the diploma.
The spokesperson said Treble J informed students of the course fee and that a VET FEE-HELP loan had to be repaid to the federal government.
Churchill Education said it received withdrawal forms on February 4 from some students in Bendigo and began investigating the reasons for withdrawal.
The spokesperson said the company received withdrawal forms from Ms Whitehouse, including forms of students it had no record of.
"We have made and continue to make every effort to engage with Bendigo students including telephone conversations, emails and letters sent to student addresses to assist them with reversing their student debt," the spokesperson said.
"We do not instruct, nor support, third party suppliers to engage in unscrupulous and unethical practices to refer students.
"This includes targeting refugee communities in any part of Australia."
Treble J Enterprises chief executive Richard Turner said his company and Churchill Education's operations were "extremely tight" and students fully understood the terms of their enrolment.
Churchill Education said 11 Karen students had indicated they "felt pressured to withdraw from the course by Bendigo community representatives" and wanted to resume the diploma.
"Some have returned to continue the course, with full awareness of the course costs," the spokesperson said.
Churchill Education has invited students to meet with four of its staff in Bendigo on March 22.
However during Sunday's meeting at Bendigo Neighbourhood Hub, Ms Whitehouse urged students not to attend.
"I think it is much better if we deal with the Department of Education only," she said.
The federal government announced last week it would make reforms to the VET FEE-HELP student loan program to prevent unscrupulous marketers targeting vulnerable Australians.
Assistant Minister for Education and Training Senator Simon Birmingham announced a rolling campaign of legislative and other changes to deal with rogue training providers and better protect students taking out an estimated $16.3 billion in unnecessary VET FEE-HELP loans over the next decade.
The Bendigo Advertiser has contacted the Department of Education and is awaiting a response.