University-style loans for Vic TAFE

The Victorian Government is introducing university-style loans for TAFE students, as part of a major shake-up of the system.

The overhaul will guarantee a place for every worker that wants to upgrade their skills.

The program will give diploma and advanced diploma students access to university-style loans to make study more accessible

The four year, $316-million package will create 172,000 new training places.

The Victorian Premier, John Brumby said 900 extra teachers will also be funded.

"This is the largest single investment we've ever made in our VET system," he said.

The funding will go to public, private and community training providers and will make high level qualifications more expensive.

Mary Bluett, the president of the Education Union, said the loans scheme will force tens of thousands of students out of the TAFE sector.

"The bottom line is we have the lowest funded TAFE system in Australia and this is more of this Government pushing the cost on to students and the community rather than to properly fund our TAFE system," she said.