More vocational education students will be protected if providers go broke under draft laws that have cleared the Senate.
A trio of bills to extend the protection regime to include domestic students passed the upper house on Thursday.
Students using government loans will be protected if their provider doesn't begin a course on time, makes it unavailable before enrolled students can begin, or closes it entirely.
Under the changes, domestic students receiving VET Student Loans for vocational students or FEE-HELP for higher education students will be covered.
Upfront full fee-paying students won't be covered, but the federal government has vowed to look at expanding the scheme after the passage of the legislation.
The House of Representatives has to tick off on two of the three bills.