Sydney education provider Sterling College collapses

The woes of Australia’s vocational education sector have deepened with news that Sydney-based provider Sterling College has collapsed into administration, with 35 staff terminated and 500 students now in danger of losing thousands of dollars in pre-paid fees.

Dharmappa Hagare, the sole director of Sterling College Pty Ltd, which operates the group’s Sydney training college, appointed Quentin Olde and Matt Adams of Taylor Woodings last night.

The Sydney facilities have been closed immediately, with all jobs lost. Taylor Woodings said in a statement that the college’s Brisbane campuses, which are part-owned by Hagare, will remain open for the time being.

According to Sterling College’s website, the Sydney campuses offered courses in English, hairdressing, hospitality, financial services and IT.

It appears students have little chance of recovering lost tuition fees. The administrators said they have no alternative but to close the Sydney campuses because the financial position of the College was so dire.

“There are insufficient funds to meet the costs necessary to operate the business, including the salaries of its employees. Students have unfortunately been severely impacted by the failure of Sterling College and have had not only their education process suddenly halted, they also face the prospect of a financial loss, as most of their tuition fees have been paid in advance.”

The administrators will now start discussions with the Australian Council for Private Education and Training to try and figure out how best to help students affected.

ACPET chief executive Andrew Smith said this morning that his organisation’s Tuition Assurance Scheme will allow most students to transfer to another institution.

“It’s obviously a very distressing time for students involved and we’ll be doing all we can to offer support as well as help their transition to a comparable course at a nearby institution,” Smith said.

Australia’s vocational education sector, one of the nation’s biggest exporters, appears to be in turmoil.

Two weeks ago, education provider Melbourne International College collapsed into administration, leaving around 350 students stranded. A report in The Age suggests the Victorian Registration and Qualifications Authority is auditing 17 private training colleges considered to pose a ‘‘high risk” to international students.

ABC Television’s Four Corners program has also highlighted complaints from Indian students about the poor level of education services being provided by education providers and unscrupulous practices by some education and migration experts.