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Under the Education Services for Overseas Students 2000 (ESOS Act), a provider default occurs when an overseas student or intending overseas student has not withdrawn their enrolment and either:
- the provider fails to start providing a course to an enrolled student on an agreed starting day, or
- the provider stops providing a course to a student at a location any time after the course has begun, but before it has completed.
The most common causes of provider default are:
- provider closure
- failure to deliver a particular course.
The Education Services for Overseas Students 2000 (the ESOS Act) requires training providers to provide tuition assurance for overseas students for courses for which they have paid, and refunds where applicable.
Providers have certain obligations in situations where they default in relation to an overseas student or intending overseas students. Registered providers also have obligations to report defaults, and the actions they take after defaulting, in relation to an overseas student.
Default exception notices
Sometimes a provider default may occur because of a change of legal entity.
In this situation, ASQA may issue a default exception notice under section 46A(4) of the ESOS Act. This default exception notice will allow you to continue providing your courses under the new legal entity title to overseas students who have already commenced.
Tuition Protection Service
Providers should contact the Tuition Protection Service (TPS) immediately if at risk of defaulting. If you default, the Tuition Protection Service (TPS) will work with you to support students. More information can be found on the TPS website.
Provider default obligations
If you default, your obligations include but are not limited to:
- You must give notice of provider default within three business days of the default occurring.
- Notices must be lodged using the Provider Registration and International Student Management System (PRISMS), for each confirmation of enrolment (CoE) of an affected student
- For further information, see the Department of Education, Skills and Employment has created a detailed Provider User Guide, or our webpage Reporting Obligations.
- You are also required to notify affected students of the default. This notification must be provided in writing and be in plain English.
- Within 14 days after the default day, you must either:
- arranging for students to be offered a place in an alternative course (and the student accepting that offer in writing); or
- providing a refund of unspent tuition fees (including 100 per cent refund for any student who paid tuition fees towards a course at a location, but has not commenced that course).
- Within 7 days of the end of the provider obligation period, notifying ASQA and the TPS Director through PRISMS, of the outcome of fulfilling your default obligations.
Contact the TPS immediately if you are unable to meet these obligations.
For further information, refer to sections 46A-46F of the ESOS Act and the TPS Provider Default Obligations Fact Sheet.
More information
Guide to provider default obligations under the ESOS Act