Budget 2016: Bill Shorten to promise $6 billion in savings by restricting vocational education loans
Opposition Leader Bill Shorten will use tonight's budget reply speech to promise $6 billion in savings by restricting the size of vocational education loans.
Under the proposal, an $8,000 cap would be placed on loans provided by private vocational education providers.
It will not apply to TAFE courses, with $6 billion in savings spread over a decade.
It follows a growing list of scandals involving vocational education providers, with claims of unscrupulous operators and students overburdened with debt.
The Federal Opposition has been under pressure to address a $20 billion gap over its plans to increase the tobacco excise.
A discussion paper released by the Federal Government last month suggested a similar plan to cap student loans.
Source: ABC News