$38 million wasted on dropouts is just the beginning
9 MARCH 2018
The $38 million in ‘fee-free’ education projected to be wasted on university drop outs is likely to end up being far higher, says the New Zealand Taxpayers’ Union.
Taxpayers’ Union spokesperson Louis Houlbrooke says, “The expected drop-out rate of 14% could be much higher. With no incentive to get their money’s worth, students will be less likely to put effort in, and many will abandon their studies once the gravy runs out.”
“And the $58 million figure will be far higher once you include the student allowance students receive to spend on food or booze or whatever else they want. Labour is boosting these cash payments by $50 a week. When recipients drop out, taxpayers will have nothing to show for it.”
“The cost of this policy will only increase as it is rolled out to fund three full years of study.”
The Taxpayers’ Union paper, "Robin Hood Reversed: How Free Tertiary Education Robs Today's Poor for Tomorrow's Rich", is available at www.taxpayers.org.nz/robin_hood_reversed