Its all about the wording. There are three main funding arrangements for higher education these days
HECS-HELP
This is a loan scheme that allows students to defer payment of fees for commonwealth supported places. To the best of my knowledge the CSP funding only covers the cost of individual courses within a degree program that are provided by approved universities. These are limited in number, and academically competitive in allocation. CSP funds do not cover the flight training aspect of a Bachelor of Aviation degree at a university for example. This is effectively an interest free student loan on the already subsided cost of a university degree.
FEE-HELP
This is a loan scheme that allows students to defer payment for fees in a full fee paying place in an approved tertiary education award at university. There is no government subsidy toward the total cost of the award unlike there is with subsidized CSP places. This is effectively an interest free student loan for the full cost of a university degree.
VET FEE-HELP
This is a loan scheme that allows students to defer payment for the full cost of fees in an approved tertiary education award at locations other than university. (Eg it covers Diploma, Advanced Diploma level courses etc). There is no government subsidy toward the total cost of the award unlike there is with subsidized CSP places. This is effectively an interest free student loan for the full cost of a tertiary award from tertiary education providers other than those provided for by HECS-HELP or FEE-HELP loans.
If the government wants to put flight training under HECS-HELP then I am totally against it. Subsidized flight training is something that should be provided for by the military or the private sector (see the subsidy provided by Rex).
If they want to provide VET FEE-HELP loans to CPL students then I'm all for it. I wish that model of funding was around when I did my training and I certainly won't begrudge any student that takes the opportunity.