Scrapping Fees Free; A Kick To The Gut While Students Are Already Down

Students' associations across the country condemn the Government’s decision to scrap the Fees Free tertiary education scheme in the Budget 2026. This decision will shift costs onto students and households, drive graduates overseas, and will severely weaken New Zealand’s ability to build the skilled workforce required for productivity, public services, and long-term economic resilience.

The Finance Minister, Nicola Willis, has confirmed the scheme will end following remarks from Winston Peters, ahead of Budget Day on 28 May. While current settings may preserve eligibility for some learners already in the system, the Government has confirmed that future learner cohorts will lose support that has lowers barriers, reduced debt, and enabled more New Zealanders to access study and vocational training. There is no indication that any relief for students' cost of living or for student debt will take place.

Aidan Donoghue, President of the Victoria University of Wellington Students’ Association, says: “The Government’s decision to abolish Fees Free is a retrograde step that will materially increase barriers to tertiary participation. At a time when many households are experiencing acute cost pressures, this move will saddle students with more eye-watering debt, deter capable New Zealanders from upskilling and will widen inequities in access and completion.”

Fees Free was established to support participation by reducing financial barriers and hardship at the point of entry and completion. Removing it is likely to entrench existing disparities, with disproportionate impacts for Māori and Pacific learners, disabled learners, students from low-income backgrounds, and first-in-family students.

“Education is a right, not a privilege. The decision to scrap Fees Free places further barriers in front of ākonga (learners) at a time where the cost of living is already pushing many out of tertiary education, especially disabled learners. Ākonga should not have their rights to education and their future treated as political bargaining chips” says Nikita Van Dijk, Co-President of the National Disabled Students’ Association.

New Zealand’s skills pipeline depends on a coherent tertiary system that values vocational education and training alongside university and postgraduate pathways. The Government should not present this as an either/or proposition. A credible approach would strengthen access across the system, rather than withdrawing support from one pathway in order to fund

Another.

We call on the Government to:

Reverse the decision to scrap Fees Free in Budget 2026 and maintain eligibility for future cohorts.

Confirm transparent transition arrangements for learners currently enrolled or preparing to commence study in 2026.

Confirm its commitment to both national and international agreements, such as the New Zealand Disability Strategy 2026-2030 and the United Nations Convention on the Rights of Persons with Disabilities (UNCRPD) by ensuring there are strong, accessible pathways to all forms of tertiary education.

Release the full advice, costings, and distributional analysis informing this decision, including impacts by income, region, Māori and Pacific learners, and disabled learners, prior to any legislative change.

Engage with students and providers on a long-term, evidence-based tertiary funding strategy that lifts participation and completion without increasing hardship or student debt.

Donoghue says: “Budget decisions reflect political priorities. If the Government is serious about lifting productivity, strengthening public services, and ensuring opportunity is not determined by family income, it should retain Fees Free and invest in learners—rather than shifting costs onto those least able to absorb them.”

Signed:

Aidan Donoghue, President of Te Aka Tauira - Victoria University of Wellington Students’ Association

Seamus Lohrey, President of Te Awa Kōtui - Waikato Students’ Union

Daniel Leamy, President of Otago University Students’ Association

James Portegys, President of Auckland University of Technology Students Association

Eloise Fleming and Nikita Van Dijk, Co-Presidents of the National Disabled Students’ Association (NDSA)

Nimish Milan Singh, President of Te Rōpū Kahikatea - Auckland University Students’ Association

Zara Weissenstein, President of the Lincoln University Students’ Association

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