Reasons New Student Loan Rules Ain't Right: Timing
MEDIA RELEASE – PTE Budget Policy Awareness Group
17 July 2006
Ten Reasons Why Implementation of the New Student Loan Eligibility Rules Just Ain’t Right (Reason Number 1)
REASON NUMBER ONE - TIMING
The new student loan eligibility rules were announced on Budget Day in May 2006. They take effect from January 2007. The new rules require that only students enrolled in TEC funded courses can receive student loans and allowances.
The last TEC funding round was concluded in April. The next TEC funding round is not scheduled until 2007, with funds not available until 2008.
Dozens of PTEs therefore face a period of at least 12 months during which students enrolled in their courses will not be eligible for student loans. Students will flee these PTEs on mass, PTEs will go under, hundreds of teaching staff and students will be stranded.
“We have been left way up the proverbial creek – left to sink - left without any lifeline, let alone a boat or even a miserable oar,” said Brijesh Sethi, PTE Budget Policy Awareness Group spokesperson.
Timing is just one part of this story.
Reason Number Two to follow tomorrow.
Without warning or consultation with the sector, it was announced that only student enrolled in courses funded by the TEC would be eligible for student loans and allowances, and that this new rule would apply from January 2007.
More than 100 PTEs provide courses not funded by TEC. Between 40 and 50 only provide courses not funded by TEC. Many of these PTEs will be forced to close at the end of the year.