An education provider default occurs when a CRICOS-registered institution that has enrolled international students on student visas is unable to continue delivering the enrolled course — typically because the provider has closed, had its CRICOS registration cancelled or suspended, or has become financially insolvent. When a provider defaults, the students enrolled at that institution face a disruption to their enrolment that is not of their making, creating potential issues with their visa condition requiring active study at the named institution. The Australian Government's response to provider defaults has two key elements: the Tuition Protection Service (TPS) under the ESOS Act, which facilitates placement into alternative courses and manages refunds; and DHA's approach of not automatically cancelling student visas solely because of provider default, while requiring students to take steps within a short window to find an alternative provider. This page explains the education provider default framework, the 28-day window for re-enrolment, refund rights, and the visa implications for affected students.

For current guidance on education provider defaults, the TPS, and student rights, refer to the DHA education provider default page and the TPS website.

• Education Services for Overseas Students Act 2000 (ESOS Act), Part 5A — the Tuition Protection Service framework; obligations of registered providers to notify the TPS Director on default; placement of students into alternative courses; refund of tuition fees
• National Code of Practice for Providers of Education and Training to Overseas Students 2018, Standard 7 — education providers must maintain student enrolment data in PRISMS and report changes to student enrolment status including defaults
• Migration Regulations 1994, Schedule 8, condition 8202 — student visa condition requiring the holder to remain enrolled in the registered course and to achieve satisfactory course progress; a provider default may prevent compliance through no fault of the student
• DHA: Education provider default — immi.homeaffairs.gov.au/provider-default

What triggers an education provider default

An education provider default under the ESOS Act occurs when a registered provider:

• Closes or ceases operations, including becoming insolvent or entering administration
• Has its CRICOS registration cancelled, suspended, or not renewed
• Is unable to deliver the enrolled course for any other reason (including being placed on a probation or show cause notice)

The provider is required to notify the TPS Director when a default occurs. The TPS Director then contacts affected students and activates the placement and refund processes.

The 28-day window for re-enrolment

When a provider defaults, affected students have a limited window — typically 28 days from the date of default notification — to enrol in an alternative CRICOS-registered course and provider at a comparable level. During this window:

• DHA generally does not take adverse action against the student's visa simply because they are no longer enrolled at the original institution
• The student must actively work to find an alternative provider — inaction after the notification can put the student's visa at risk
• The TPS assists with placement into alternative courses — the TPS Director works with registered providers to find suitable placements for affected students

Students who are unable to find a suitable alternative provider within the window should contact DHA to discuss their visa situation, as they may be eligible for a visa extension or other relief measure.

Refund rights and the Tuition Protection Service

Under the ESOS Act's tuition protection framework, international students have a right to a refund of pre-paid tuition fees for course components that have not been delivered. The process is:

1. The student has the right to a refund from the defaulting provider for any undelivered tuition
2. If the provider is unable to pay (e.g., insolvent), the TPS fund covers the refund — the TPS Director facilitates payment from the fund
3. Alternatively, the student may choose to be placed in an alternative course rather than receiving a refund — in that case, the credit can be transferred

Not all fees may be refundable — specifically, fees paid for enrolment or administration services that have already been performed may be excluded from the refund. For current refund processes, refer to the TPS website.

Visa implications

A provider default can affect a student's visa in several ways:

• Condition 8202 compliance: the student visa requires the holder to remain enrolled in the registered course — a provider default creates a period of non-enrolment that could technically breach condition 8202; however, DHA recognises that a student in a default situation is not in breach if they are taking active steps to re-enrol within the designated window
• New study permit or change of conditions: if the student successfully transfers to a new provider, the student visa still names the original institution; a new visa application or a change of conditions application may be required to reflect the new provider and course — students should seek advice on whether this is necessary in their circumstances
• Visa expiry during the re-enrolment period: if the student's visa is about to expire during the default period, they should apply for a visa extension promptly; the default situation may be taken into account in the extension assessment

Prevention — choosing a stable provider

Students can reduce the risk of being affected by provider default by:

• Choosing well-established, accredited institutions with strong CRICOS compliance histories
• Checking whether the institution is still on the CRICOS register before paying fees
• Not paying large amounts of tuition fees for distant future periods in advance — limiting advance payments to what the ESOS Act permits reduces the financial risk of a default

Education provider defaults are not common, but they do occur — particularly in the private vocational education and training (VET) sector, which has seen regulatory action against a number of providers over compliance issues. Students at private colleges are generally at higher risk than students at public universities, which have more stable government-backed financial positions. The ESOS framework's tuition protection mechanisms were introduced specifically to address concerns about the financial risk to international students who pre-pay tuition — the TPS fund is the safety net for cases where a provider becomes insolvent. Students affected by a provider default in a registered course at a public provider (university) are less likely to face financial loss but may still face the disruption of course cancellation or suspension. For current TPS procedures, affected students' obligations, and DHA guidance on visa implications of provider default, refer to the DHA education provider default page.