College collected fees while sinking

College collected fees while sinking
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Note from Dinesh Weerakkody LLB; PDLP- Solicitor & a Barrister

When choosing an education provider students should not only consider the fees of the courses and number of days the courses are held but must also investigate the reputation and quality of the education that will be provided and of the agent.

The writer pleads with the students and advice seekers to do research and use a degree of caution and common sense when making decisions that affects once future and when consulting agents and not only of the cheap cost of some consultations.

Dinesh Weerakkody is practicing as an Australian Solicitor & a Barrister and as a Migration Agent (0742843) at Oates Rennick & Associates. Mob: 0425725570

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A PRIVATE college that collapsed last week was taking fees and reassuring its mainly Indian students even as it appeared to be sliding into financial failure.

Angry students claim Melbourne International College was accepting fees of $1500 to $4500 and offering discounts on forward payments as late as last Wednesday.

But by Thursday morning the college was using text messages and emails to notify its 330 students that classes had been cancelled for the rest of the week and they should attend a meeting on Friday to be briefed on their entitlements.

Student Ajith Bruz, 26, from southern India, claims that even on Thursday morning front desk staff were telling students they didn't have to worry.

"They said nothing was going on and we didn't have to worry," said Mr Bruz, whose friend was one of those who had paid a fee instalment on Wednesday.

The fees paid by students are protected under an industry tuition assurance scheme that entitles them to be placed at other private colleges.

Under the scheme, the new college cannot charge students for the part of the course already paid for. But it could be up to 28 days before placements are found.
Students are also protected by a federal government assurance fund that is supported by a levy on the industry.

"We don't know what colleges we'll be going to, how much time we will have to be in class or what the fees are," said Mr Bruz.

Last year, a former MIC director, Thulasitharan Santhirarajah, 35, was arrested by Australian Federal Police at the request of the FBI over alleged terrorism offences in the US believed linked to the Tamil Tigers. But according to Australian Securities & Investments Commission documents Mr Santhirarajah does not appear to have ceased being a director until June this year.

Current sole director Yarlini Nadarajamoorthy, 21, said yesterday she did not know Mr Santhirarajah. But ASIC documents list them as having had the same address in Melbourne's outer eastern suburbs. Ms Nadarajamoorthy declined to comment on MIC's collapse.

The collapse comes as authorities are cracking down on the permanent residency driven training sector after a spate of assaults on Indian students in May sparked outrage in India and focused attention on reports of fraud and student exploitation among some agents and colleges.

Immigration Minister Chris Evans flew out yesterday to India to shore up the reputation of Australia's $15 billion education export industry and reassure Indian parents, media and government that Australia was a safe place to study.
Senator Evans said that so far there has been no sign of a downturn in the demand of Indian students to study here. India is our second largest and fastest growing source of international students, with most of the growth coming in the vocational training sector.

At the MIC student meeting on Friday some students claimed the quality of teaching had been poor, but freely admitted most were simply doing the course in the hope of eventually applying for skilled migration.

The majority of the students were paying a total of $18,000 each to study for a two-year diploma in community welfare.

The Victorian Registration and Qualifications Authority had been closely monitoring MIC before the collapse, but it was not one of the 17 colleges being investigated under the VRQA's rapid audit of colleges announced in May.

ASIC records show that MIC had been in the hands of administrators since late 2007 after being investigated earlier that year over reported allegations that in return for a fee it was passing students who did not attend class.

In January last year, new management was brought in and creditors agreed to allow the company to work itself out of trouble under a deed of company arrangement. As recently as June 29, a creditors meeting was told the company had fulfilled its obligations.

Article from: The Australian - Andrew Trounson | July 20, 2009