The Federal Government is 'owed' over $300m by students who have not repaid their loans. many of these are university course loans of less than $30,000. If these students don't see any necessity to repay loans - then what does this say for the probity of the custodians of our tax dollar? It says that they don't really care - and students have long since sussed that out.
Now there is a parallel with university student loans and with aviation loans. Both are ill conceived, and both are poorly managed.
Do we need a tertiary trained workforce in Australia? Hell no - not when we're using the 457 visa scheme to fill essentially jobs that well eddicated Aussies feel are demeaning and below their exalted status of uni graduate! Does a Canberra tealady need an MBA? Do we need more CPL's? No way! All that's happening is that training organisations are continuing to operate profitably - while the taxpayer is funding a major share of these programs. The result is too many tertiary providors and too many flight schools.
If the government of the day were committed to rational expenditure, they would close off this wasteful system and allow the real market to sort itself out. If there is a perceived future shortage - offer non-repayable scholarships to students based on aptitude, and this will be more likely to see them remain in their chosen profession - and in Australia.
The recession we're about to have is going to force government into trimming these expenditures.