Education Policy | Post Primary | Preschool | Primary | Tertiary | Search


Why New Student Loan Rules Aint' Right: Reason 9

MEDIA RELEASE – PTE Budget Policy Awareness Group

27 July 2006

Ten Reasons Why Implementation of the New Student Loan Eligibility Rules Just Ain’t Right (Reason Number 9)

Reason Number Nine: Alignment, Alignment, Alignment

Under the new system TEC subsidies will be “aligned”with student loans and allowances. And “alignment” has been repeatedly touted by Government as the driving rationale and fundamental principle behind the policy change.

So, given the holy importance of alignment to the policy, it seems astonishing the implementation is marred by complete and utter disconnection. No thought was given to aligning TEC funding processes with implementation of the new loans rules. The result is a senseless situation whereby dozens of PTEs will simply be forced to close without an opportunity to adjust to the new rules.

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.

“It is a crazy situation. There is a gaping black hole in the implementation process through which we have been shoved without warning or lifeline. This whole mess could have been averted with just a small dose of commonsense and the alignment of critical timeframes.”

“It was a monumental policy bungle on the part of Wellington that will be paid for in PTE casualties up and down the country,” said Brijesh Sethi, Spokesperson for the PTE Budget Policy Awareness Group.

That is only part of the story.

Reason number ten to follow tomorrow.

The Issue:

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.

The PTE Budget Policy Awareness Group is calling for a fair and reasonable transition period to the new loans and allowances regime.


© Scoop Media

Culture Headlines | Health Headlines | Education Headlines

Howard Davis Article: A Musical Axis - Brahms, Wagner, Sibelius

Brahms' warm and exquisitely subtle Symphony No. 3 in F major, Wagner's irrepressibly sentimental symphonic poem Siegfried Idyll, and Sibelius' chilling and immensely challenging Violin Concerto in D minor exemplify distinct stages of development in a tangled and convoluted series of skirmishes that came to define subsequent disputes about the nature of post-Romantic orchestral writing well into the following century. More>>


Scoop Review Of Books: A Pale Ghost Writer

Reviewed by Ruth Brassington, Richard Flanagan's new novel is about a novelist hastily ghost-writing the biography of a crook about to go to trial. The reader is kept on a cliff-edge, as the narrator tries to get blood out of his stone man. More>>

Negotiations Begin: Equal Conditions For Men & Women In Professional Football

The trade union representing New Zealand's professional footballers has initiated bargaining for an agreement securing equal terms and conditions for men and women. If negotiated, it will be the first agreement of its kind in the world. More>>


New Zealand Wars Commemoration: Witi Ihimaera's Sleeps Standing Moetū

The second of several articles to mark Rā Maumahara, remembering the New Zealand Land Wars. The first was a Q&A with Vincent O’Malley, author of The Great War for New Zealand: Waikato 1800–2000. More>>


Howard Davis Review: Conflict & Resistance - Ria Hall's Rules of Engagement

From the aftermath of war through colonisation to her own personal convictions, Hall's new CD addresses current issues and social problems on multiple levels, confirming her position as a polemical and preeminent voice on the indigenous NZ music scene. More>>



  • Wellington
  • Christchurch
  • Auckland