I would be very surprised if cadets are not applying for the free training deal. If there are training slots cancelled in Australia, it would most likely have concerned direct entry individuals because the SO deal is just not good enough, and DEFO was not on offer for the longest of time for most of them. About cadets paying for their training, well, without keeping it completely seperate from ability that inevitably ends in a quality reduction of your staff.
I don’t have anything against an individual contributing to their own basic training, if anything it will stop the “Oh I didn’t think to become a pilot until about two years ago and saw it was a good deal” type of individual from applying. As long as your financial situation doesn’t affect your ability to be eligible and a good financing deal is available I think it’s only a good thing if one has skin in the game.