Training providers are responsible for agent performance, but they currently do not have the tools necessary to perform the proactive monitoring and ongoing management required. You need a system that works.
But let’s take a step back. The international student visa system requires three groups to work together effectively: students, agents and education providers. If two of the three groups do not act in good faith, there is a risk that the system will be exploited to make money.
Failure to be honest about all three would be a disaster. As a result, we are now seeing the government issue its first warning letters.
Most of the problem lies in the agent-collector model. Some aggregators do a great job, but we are now seeing the impact of questionable actions taken by some.
It is unclear how much the agent pool used by Australian education providers has grown over the past decade, but the complex network of aggregators, agents and sub-agents has undoubtedly played a significant role in breaking down the current system.
When training providers work with aggregators, they do not have a direct relationship with the agents the aggregator contracts with or have clear visibility into the sub-agent network. This means they have no contractual ability to punish those who commit fraud.
Even if your agent is terminated by an education provider, you can still get your students to the same provider through an aggregator. This is a huge loophole that is being exploited by some bad actors in the sector. There has also been an increase in land poaching, where insidious agents persuade students to switch educational institutions once they arrive in Australia.
It's worth acknowledging that there are many trustworthy agents with strong processes in place, but we need to weed out those who are simply driven by the opportunity to make money without considering anything else.
Use data to measure performance
So what should we do? It would be a game-changing change if the government mandated that education providers regularly send data to the Australian Skills Quality Authority and the Tertiary Education Quality and Standards Agency.
This will allow these Quality Assurance (QA) organizations to take corrective action when necessary rather than taking extreme brute action after all is well, as we are seeing now. Problems are discovered every month instead of compounding over years.
These QA organizations must take an active role in clearly identifying and specifying parameters related to agent performance management. Quality assessments should be based on measurable data, not subjective perceptions.
This won't be difficult. Relevant data points to consider include application conversion rates, visa approval rates, withdrawal rates, and visa cancellation rates.
Providers with a transparent visa system can attract the right students.
Linking visa-related rates (e.g. approvals, cancellations and withdrawals) to education providers requires introducing a more transparent visa system that providers can use to attract the right types of students. Modernizing the Provider Registration and International Student Management System (PRISMS) is a step in the right direction.
But government can do more. A transparent visa system allows providers to attract the right students who not only meet the entry requirements but also the government's visa requirements.
Measures could include requiring students who wish to change institutions or downgrade their qualifications after arriving in the country to re-apply for a visa, and discouraging questionable institutions by preventing inauthentic students from “leapfrogging”.
You may also require students to pay their first year of tuition in advance and deposit their first year's living expenses into an approved bank account. This can help reduce fraudulent financial activity to a small number and ensure students have the finances to continue their education. Without having to rely on part-time employment.
The reactive response currently being implemented by the government is bound to ultimately fail. Instead, what we need is a more proactive approach that delivers lasting benefits to Australia's higher education sector and better employment outcomes for international students.
Collectively, we must come together as one nation with a common goal: to rebuild Australia as the world's best education destination.