Australian college closings hurt foreigners

AUSTRALIA'S image as a top destination for foreign students suffered another setback yesterday after four bankrupt colleges closed, leaving more than 2,000 students stranded.

Australia's US$12 billion international student sector, the country's third-largest export earner behind oil and coal, has come under fire after reports some colleges had taken payments for certificates and residency visas.

The issue has caused diplomatic discomfort for Australia, with Indian officials expressing concern over the treatment of Indian students, who make up the largest number of overseas students in Australia.

A spate of attacks on Indian students in Australia earlier this year also sparked angry protests in India and prompted Prime Minister Kevin Rudd to call his Indian counterpart to assure him of student safety.

Global Campus Management Group, which owns four private colleges in Sydney and Melbourne, was placed into voluntary administration on Thursday.

To restore the confidence of overseas students, it is a process that could take years. The Australian Education Union urged greater regulation of the private colleges.

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