The Federal Government is still in the process of wiping almost $500 million in dodgy VET fees.

The federal government has been forced to wipe clean the debt slapped on students in one of the worst education rorts in Australia.

Almost 40,000 students’ debts have been cancelled so far, but there are still thousands of unassessed cases waiting.

The debts were placed on students through the vocational loan scheme known as VET.

The flawed program granted virtually unregulated government subsidies to anyone who signed up.

This led to many thousands of people being duped by private course providers, in some cases signing people up to loans they did not consent to.

The vocational loan scheme was scrapped in 2017, but the government only began to wipe debts found to be inappropriate this year.

It could take another year before all complaints have been assessed, according to the Commonwealth Ombudsman.