“Budget 2011 – Not So Lucky For Some”

Press Release 27 May 2011 – For Immediate Release

“Budget 2011 – Not So Lucky For Some”

Lincoln University students are disappointed that the Government’s announcement in the 2011 Budget last Thursday continues a pattern of cuts over the past few years and fails to show its commitment to properly invest in education.

“The Government is simply shifting money around the same pot using “savings” from student loans – unfortunately these savings will have a big impact on some of our more disadvantaged students”, says Lincoln University Students’ Association President, Ivy Harper.

“These cuts will come at a cost. Removing the course-related costs component of student loans for part-time full-year students affects thousands of students who may be juggling study with work and other commitments and penalising those who are trying to get ahead. This has even more impacts on women, let alone mature women”, notes Harper.

“The rationale that older people will not repay their loans therefore at age 55 they will not be eligible for certain allowances is both flawed and discriminatory and I would argue a Human Rights issue”, contends Harper. “A recent mature graduate of Lincoln University considers himself lucky to beat the new policy. He began an undergraduate degree at age 54 graduating in 2007 and completing an honours degree the following year. He is partway through a Masters degree but is working full time to pay back his student loan. At the time he was a full time student, he claimed the course related costs and living allowances because as a mature student he did not have the same access to scholarships as younger students, or could easily convert assets to cash”, says Harper.

“The course related costs were essential to this student’s ability to complete his studies. His life experiences and work ethic got him through his degree programmes but any restrictions or limits to those benefits would have had a detrimental effect to his ability to complete his studies, adds Harper. “As a fulltime student I needed the student loan for living and course costs but I always knew I had to repay it as I’m sure many others who take out such loans do”, says the mature student who wishes to remain unnamed.

The Government further contends that “borrowers in older groups have a lower return on investment than younger borrowers”, however, they later acknowledge that “the average income of borrowers aged 55 and over is consistently below the median for all borrowers”, Harper adds. “The government’s policy to not allow students over 55 years to apply for living and course costs makes a mockery of this group who have worked hard and paid taxes for a huge number of years and deserve the opportunity to upskill”, contends Harper. “They are not asking for a handout but rather a hand up. Our mature ex-student is currently a valuable member of the university staff diligently repaying a student loan and making a valuable contribution to Māori development”, notes Harper.

“Additionally to suggest that the savings in the Student Loan Scheme will help future New Zealanders to access tertiary education is ironic given that it is preventing a section of the community from accessing tertiary education right now”, says Harper.

“Finally, students in Canterbury are continuing to face ongoing challenges as a result of two earthquakes. While the Budget provides funds for a Canterbury skills package, many students could potentially be part-time full year students who miss out on the ability to participate because they cannot access course related costs. Additionally, the extra 750 places at private training establishments equate to an extra $18m over 4 years. One could argue that this should be prioritised for public institutions like universities and polytechnics of which there are three such institutions in this region,” challenges Harper.

ENDS