Why are so many RTOs failing?

In some recent high profile cases, well-known RTOs have collapsed, leaving students bereft and disillusioned – without a qualification and with a large debt to pay off.

Why are these RTOs failing?

Some other RTOs have lost their license to operate. There are a few key reasons why this occurs and all are related to quality.

Naughty marketing and enrolment tactics

The first is related to government funding and the way an RTO is marketed and enrolments achieved. Some unscrupulous RTOs cold call prospects and may also utilise inducements such as a free laptop to entice people to sign up. In many cases it’s part of a misleading exercise to sign prospects up for a government funded qualification without them realising that they will be required to pay off at some time in the future. All they see at the time is the free giveaway. These practices are illegal and ASQA (the Federal government regulator) is trying to stamp them out. Where an RTO is found guilty of such practices they may lose their licence.

Sub-par programs

The other reason RTOs lose their license to operate is if they are found to be providing sub-standard programs and/or supporting services such as assessment, minimum study hours and so on. ASQA audits RTOs every 5 years when their license is up for renewal and, at other times as required. While the sector is premised on set quality standards and continuous improvements, repeat offenders can lose their license.

Reliance on government funding for profit

Many of the recent closures have been the result of a withdrawal of government funds. Unfortunately a number of RTOs base their entire business model around government funding therefore when this is reduced or withdrawn, they have no alternative source of income and are forced into bankruptcy. By relying on government funding, some RTOs can effectively overcharge for their courses, providing a false sense of trust in prospective students and a sense of disappointment to enrolled students when they under-deliver on quality and support.

Will this happen to CAL?

In short… no.

The College for Adult Learning has been around since 2008, in fact, we were one of the first to be granted an RTO license when the Victorian Government first deregulated vocational education. We recently had our license renewed for a further 5 years and, were fully compliant with all audit requirements at this time.

CAL does not access government funds

This means we are not reliant on these funds (as many other RTOs are) and are not subject to any sudden changes the government makes.

CAL only delivers programs and qualifications we really specialises in

We don’t try and deliver hundreds of qualifications to get as many enrolments as we can at the detriment of content and support integrity; instead we focus on a small number of qualifications that we are specialists in and that we can confidently deliver to the highest possible quality.

CAL respects its prospective students

CAL’s sales and marketing team doesn’t cold call so it doesn’t attempt to entice unsuspecting prospects to enrol in courses that they are not suited to. Because CAL is a fee for service RTO all CAL students pay for their course enrolment. This means they must make an informed decision to purchase – our sales team can’t mislead or entice them to enrol without an upfront payment (as is the case for some government funded courses).

CAL knows its stuff

All CALs decision-makers are specialist educationalists and industry experts so we can guarantee that the courses we offer are of the highest possible quality. They are also constantly reviewed and updated.

The College for Adult Learning, like many other quality RTOs is rock-solid. All our courses comply with the ASQA standards and we do not rely on the government for funding. CAL, like so many other quality providers is here to stay. You can rest assured you’ll have the time and support to complete your study in your preferred timelines.

Find our more about the courses we offer today