Australia's overseas students face rip-offs, fraud

Australia's international student sector, the third-largest export earner behind oil and coal, could be more at risk from within, with education agents and colleges ripping off students, than from recent attacks on Indian students.

Education experts are calling on Australia to overhaul the A$13-billion ($11-billion) international student sector as reports emerge of private colleges allegedly taking under-the-counter payments for certificates, bogus work references and residency visas.

"In many cases landlords, bosses, immigration agents and education institutions are ripping off our Indian students," said the Federation of Indian Students of Australia.

"Indian community groups need to name and shame these people who are bringing the reputation of Indians into disrepute and exploiting Indian students. Each community group could publish the name of 'rip-off merchants' on their websites so that students know exactly whom they should avoid," said FISA.

The Immigration Department said that it was investigating 23 Victorian and five New South Wales state education institutions in April for possible breaches of immigration laws. It would not say how many were currently under investigation.

Local media say more than 60 Victorian foreign students currently risk deportation over false documents.

"Any shonky (fly by night) operators will reduce the reputation of us all. Quite apart from safety issues, low quality standards of education affect 'brand Australia'," said Glenn Withers, chief executive officer of the Universities Australia.

The Migration Institute of Australia has called for a parliamentary inquiry into the international education sector, citing the need to crack down on local and overseas education agents who, unlike migration agents, can act without regulation.

"It is an industry too valuable to be hijacked by illegal and unethical behaviour by either desperate visa seekers or unscrupulous operators," said Maurene Horder, the institute's chief executive officer.

A spate of attacks on Indian students in Melbourne and Sydney has seen Indian media accuse Australia of being a racist nation and prompt Australian Prime Minister Kevin Rudd to call his Indian counterpart to assure him of student safety.

While some students believe the attacks have been racist, warning of a culture of "curry bashings" in Australia, police and the wider Indian community say the majority of attacks have been purely criminal.

They say many Indian students travel late at night from colleges and part-time jobs, and are vulnerable.

Education officials fear the attacks may damage the sector.

"Reports from our university overseas agents are indicating a significant hesitancy and questioning, not only in India but spreading to Vietnam and a little in China," said Mr Withers. "But it's not flowing through yet in a reduction of applications."

About 30 per cent of foreign students attend mainstream Australian universities, while the rest are enrolled in smaller institutions such as private language and vocational colleges.

"We do have some fraud and we do have some shonky operators," Immigration Minister Chris Evans told local radio last month.

"I think some of the colleges are more focused on trying to sell a visa and their education outcomes are not as good as they should be," he said.

Australia granted 278,184 student visas in 2007-08, an almost 22 per cent rise over the previous year. Indians represent the highest number with 39,015 visas, followed by China with 31,511.

Education expert Robert Palmer, who runs Overseas Students' Support Network Australia, says he has filing cabinets full of cases of overseas students being ripped off.

"They are told the streets are paved with gold, it's like a gold rush all over," he said.