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FEDERAL member for Bendigo Lisa Chesters says she is "disgusted and angry" about the situation facing some Karen refugees and wants an investigation into how they owe money for diplomas in early childhood education.
Her comments come as two students were this week notified their debts had been waived.
Ms Chesters met with Karen students and their advocates from Bendigo Neighbourhood Hub on Friday.
They told her they signed up to the diploma run by Queensland-based trainer Churchill Education thinking it was for free and then later discovered they each owed $16,800 in a fee help debt.
The 52 Karen students are seeking to withdraw from the course and have the debt cancelled.
"It’s complicated because this training group is delivering certificates and diplomas, for each individual person there’s a slightly different history," Ms Chesters said.
"I was disgusted and angry to learn about some of their experiences."
Ms Chesters said training provider Churchill Education and its third party provider Treble J Enterprises should be investigated.
She will make a submission to a current senate inquiry into the operation, regulation and funding of private training providers.
"I strongly believe that it’s our public institutions like our TAFEs and universities that should be delivering these courses rather than private providers that are not even based locally," Ms Chesters said.
She will write to the federal treasurer, education minister, the tax office and will mention the matter in a speech to parliament next week.
A Churchill spokesman said the company was frustrated with Bendigo Neighbourhood Hub, saying forms for students were incorrectly completed, preventing them from cancelling their debt.
But Angelique Whitehouse of the hub said any mistake was not their fault because she received instruction from a Churchill staff member who visited Bendigo.
The Churchill spokesperson said it was unfortunate Ms Chesters had not spoken to the company to get a better understanding of the matter and that she had been given inaccurate information.
"We will be writing to Ms Chesters immediately to give her a full briefing of the situation," the spokesperson said.
Ms Whitehouse was contacted by two Karen students on Friday afternoon saying they had received letters informing them their student loan had be waived.