International guest students have left owing almost $700,000 in unpaid fees

WHILE the government chases foreign students as cash cows, it’s been revealed that international students allowed to study as guests have left taxpayers hundreds of thousands of dollars in debt.

Adelaide United

INTERNATIONAL students allowed to study as guests have left town owing hundreds of thousands of dollars to cash-strapped South Australian government schools.

There are about 1300 international students who study in 100 qualified SA state schools. They stay with SA host families, usually because the students want to go on to study at Australian universities.

But bad debt figures released by the Education Department show that the parents of 146 students are being pursued for unpaid fees totalling $692,000, stretching back to 2012.

The Government has written off bad debts older than this, but has not revealed the total figure.

Education Department but Xenophon Team MLC John Darley said the problem emerged in documents he obtained under the Freedom of Information Act.

He said while the parents of students were asked to pay the department before the child attended school, the bills were not followed up.

“The outstanding amounts from international students is a concern as expectations for school fees should have been made clear before the student enrols,’’ Mr Darley said.

“Taxpayers should not be footing the bill for international students — these debts need to be reclaimed.”

Mr Darley said the scheme delivered a good experience for SA school students but should be properly administered.

Federal law prevents the department from charging more than 50 per cent of the total tuition fee — which ranges up to $9000 each year — in advance of students starting their studies.

The remaining amount is invoiced after the student’s arrival.

Education Department director of international education Marilyn Sleath said the combined cultural and economic benefits of the system were enormous.

“Based on 2014 income, the department estimates that full fee-paying international students studying at South Australian Government schools will contribute approximately $20 million to the state for the 2015 calendar year, alongside substantial additional economic benefits through the multiplier effect,’’ she said.

“Of this money, approximately $8 million is invoiced in fees. The department collects the vast majority of fees before invoice deadline and every effort is made to recover all debts in a timely fashion.

“Of the money which is currently owed, around $230,000 has been outstanding for longer than 60 days and strategies are in place to recover the money. Experience suggests the vast majority of that money will be recovered.”

The scheme is promoted internationally as a challenge “ ... to live and study in a different culture, improve your English, meet new people, make friends for life and become more independent’’.

Education Department information distributed to prospective students states: “Studying abroad will help you to become a global citizen by understanding new cultures and languages, broadening your experiences and sharing your culture with new people’’.

The scheme is popular for students who want to attend university in this country because it gives them an Australian Tertiary Admission Rank score, or with students who have family or friends living in Adelaide.