Troubled VET scheme replaced as laws pass

The federal government's new vocational student loans program to replace the troubled VET FEE-HELP scheme has cleared the Senate.

The legislation passed late on Thursday night, after bouncing back and forth between the upper and lower houses as Labor tried unsuccessfully to have TAFE courses exempt from the new restrictions.

Under the new scheme starting from January, the number of courses eligible for loans is being more than halved to about 350 and loans are capped at $5000, $10,000 or $15,000 based on what the government believes delivery costs should be.