The State Government has formed a taskforce to investigate the exploitation of students who are lured to NSW with false expectations of job opportunities and unrealistic study plans.

Students have complained that some private colleges are not delivering the courses and qualifications that were advertised to them. Some employers are said to pay rates below the minimum wage of $14.31 per hour.

A student from Korea said yesterday that she was studying graphic arts in Sydney and working up to 39 hours a week in a shop for $9 an hour.

"Living expenses and transport are very expensive in Sydney," said the student, who did not wish to be identified.

The president of the National Union of Students, David Barrow, said international students could only work 20 hours a week, forcing some into blackmarket jobs and under-the-counter low pay arrangements.

Mr Barrow said they were being exploited by "dodgy English-language providers, unscrupulous landlords and underhand bosses".

"Landlords have been able to exploit international students and we have heard some three-bedroom apartments can house 10 students, each paying $150 a week."

The State Government says it is aware of the concerns of these students who contribute $5.3 billion to the state economy. The Minister for Education, Verity Firth, comm-issioned the taskforce to look at ways to improve their experience.

It will be chaired by David Riordan, the chief executive of the Department of Education and Training's international arm. The taskforce will focus on the quality of education and training as well as recruitment practices, the social inclusion of students in NSW, welfare and safety.

Mr Riordan said he was aware of reports of exploitation and it will be investigated. "There have been some cases. But on the whole, the industry acts responsibly," he said.

"Australia is one of the leading countries for international students to further their studies and NSW is the premier destination."

The taskforce, which is expected to present its findings by October, will look at the transparency of student recruitment and marketing practices. It will consult private education providers, police, universities, independent schools and vocational training authorities.

A former president of the Merrylands CBD Committee, Sheldon Ross, who runs an international sales and marketing company, said he was aware of at least six students from India who had arrived in Australia with unrealistic expectations of study and work.

"They are given an understanding by the overseas agent they signed up with that jobs are abounding," Mr Ross said.

Dr George Brown, academic director for the Think Education Group, a private vocational and higher education provider, said he knew of some providers who had exceeded their government-approved enrolment capacity by up to 1700 students. He said students in less reputable hospitality courses were forced to race each other to class to be first to the limited stock of cooking utensils.