At the end of the day the Fee-Help Loan will get re-payed to the Government whether the student chooses to continue in flying or takes on another profession as deductions are made from their income via the tax system. If anything the government would be making a profit from this scheme as the debt is not only indexed with inflation but multiplied by 20%, a nice little top up to the tax payers purse.
It's an interesting proposition Pilotchute, to increase the ATAR for a student to attain a Commonwealth Supported Place (read Fee Help) in a flying course, but is the playing field really equal when it comes to achieving a decent ATAR in Year 12? A lot of it depends on your socio-economic background and what school your parents can afford to send you too. Those that go to a well off Private School are more likely to achieve this increased ATAR while those that don't come from such privileged backgrounds, those that need access to Fee-Help the most, are less likely to be able to attain a Fee-Help place.
Another interesting point unintentionally raised is the issue of an ATAR being an indicator of the ability to fly an aircraft. I have a number of friends studying Medicine (Course cost is $180,000 by the way, which is standard) who achieved ATAR's of 99+ and they commented when taken flying how they could never be a pilot because they just don't have the hand eye coordination needed.
However, I certainly agree with you Pilotchute on the point that some Universities sell Fee-Help as free money, which it certainly is not.
Checked & Set.