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Guarantors face debt recovery action

November 4, 2026 3:10 pm

[Photo: File]

Former scholarship recipients who default on overseas repayment agreements could now face action against their guarantors.

The Tertiary Scholarships and Loans Service is tightening enforcement measures to recover outstanding public funds.

It has identified cases where former recipients were allowed to travel overseas under agreed payment arrangements but later failed to honour their commitments.

TSLS states these defaults are making it harder to protect taxpayers’ money and enforce scholarship bond obligations.

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The organisation is strengthening its monitoring of outstanding balances, overseas travel records and repayment agreements.

Where recipients fail to meet their commitments, TSLS says recovery action may include approaching guarantors who have legally enforceable obligations under scholarship agreements.

However, any action against guarantors will be subject to the law, contractual obligations and decisions by the relevant authorities.

TSLS adds it collected more than $8 million for the State through recovery activities over the past 12 months.