Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Student support reforms will boost performance

Student support reforms will boost performance

Measures to reform the student support system in Budget 2010 will improve accountability of the tertiary sector and boost educational performance, Tertiary Education Minister Steven Joyce says.

The interest-free nature of the student loan scheme means that every dollar lent today is worth only around 53 cents in 2010 dollar terms. In 2009/10, the Government will lend out about $1.54 billion in student loans.

“While we are committed to interest-free student loans, it is important we are fair to taxpayers and remove any perverse incentives from the scheme as it stands,” Mr Joyce says.

“The changes we are making will encourage better results and give taxpayers a better return on their investment in the education of our tertiary students.”

The package of measures will also help students avoid ‘double jeopardy’ - where they can incur high levels of debt without gaining a qualification and the resulting higher-paying job that helps them pay the debt off.

Key initiatives announced as part of Budget 2010 include:

• Focusing students on performance, by requiring them to pass more than 50 per cent of their full-time courses over two years to be able to keep borrowing from the scheme.

• Introducing a lifetime limit on access to student loans - being seven years for an undergraduate degree (seven equivalent full time study units).

• Preventing permanent residents and Australians from accessing a student loan until they have lived in New Zealand for at least two years.

• Increasing the StudyLink student loan administration fee from $50 to $60 and introducing a new $40 annual account fee which applies once study is completed to cover more of the actual costs of administration over the life of the loan.

• Replacing the fee maxima with an Annual Maximum Fee Movement, which caps fee increases for all courses at 4 per cent in 2011.

The package will support students who make the most of their educational opportunities, Mr Joyce says.

“When students take out a student loan, but fail to gain a qualification, they incur costs for themselves and for the Government without any real gain.

“That’s why it’s important that students are asked to meet academic performance standards to retain access to student support.

“In addition, I want students coming into the country to show a commitment to New Zealand before they access this generous, taxpayer funded scheme.”

The change for new permanent residents and Australians will bring the student loan scheme into line with the benefit system and moves it closer to the way Australia approaches student support for Kiwi students.

“These measures strike a fairer balance between supporting students and respect for taxpayers that supply that support. And we are reinvesting the money saved back into more places for more students.”

ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Decision Day: Peters Chooses Labour

Winston Peters says he will form a Government in coalition with Labour and the Greens giving confidence and supply.

Peters said he had been offered the position of Deputy Prime Minister and a number of other ministerial posts would go to his colleagues

He said economic and monetary policy changes were needed to face a coming economic downturn.>>>More

Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election