Budget fact sheets 2005 - making tertiary education more accessible and affordable
The Government is investing an additional $57 million over the next four years to improving student support.
From 1 January 2006 Student Allowance eligibility is being widened, the amount of money students can earn before their allowance is affected is being significantly increased and additional assistance is being provided to students from larger families and to students with separated parents.
The Government’s aim of reducing student debt is being supported by the introduction of a service based on a small pilot, run by StudyLink, which is helping students to make the funding decisions that best suit them, as well as the introduction of new scholarships.
Additional earnings
Students will be able to earn up to $180 per week (before tax), before their Student Allowance is affected. (Previously the limit was $135.13 a week.) In addition students will not lose their whole allowance if their income goes above $180 a week; instead there will be a fairer dollar-for-dollar abatement. For example, where a student earns $185 their student allowance will be reduced by $5. It is estimated that up to 3500 students a year could benefit from this initiative worth $6.3 million in funding over four years.
Increased Student Allowances for students with brothers or sisters who are also studying
The annual adjustment for these students will be increased from $2,200 to $7,000 before tax, to recognise the additional costs parents face when supporting more than one dependent child in full-time tertiary study. It is estimated that up to 5,000 students will benefit from this initiative worth $14.3 million in funding over four years.
Increased Student Allowances for students with separated parents
The new $3,400 annual adjustment for students with separated parents recognises the additional costs separated parents have in running two households. It is estimated that up to 2,500 students will benefit from this initiative worth $5.1 million in funding over four years.
Financial information service
A pilot StudyLink financial information service, aimed particularly at first-year students, is being expanded. The service has been trialled since November 2004. The service is helping students make informed decisions about funding their tertiary studies and making them more aware of their financial commitment when they take out a Student Loan. StudyLink expects to provide this service to around 15,000 students in the next financial year rising to about 20,000 in 2006/2007. This initiative has funding of $5.8 million over four years.
Bonded Merit Scholarships
The Government has introduced Bonded Merit Scholarships. From 1 January 2006, each year up to 500 of New Zealand’s most academically capable students will be eligible for having $3,000 of their course fees paid (from their second year up to four years of study). In return, the recipients of this scholarship will be required to fulfil a bond to remain in New Zealand, post-qualifying, for a length of time equivalent to the scholarship, up to four years. StudyLink will administer the scholarships. This initiative has funding of $13 million over four years.
Other initiatives include an increase in the trainee medical intern grant for sixth year medical students (see Ministry of Education Budget 2005 information).
