19 November 2001

New Tertiary Funding Rules Focus On Effective Learning

New student loans and tertiary funding rules being introduced next year focus public money on providing students with a quality education, Associate Education Minister (Tertiary Education) Steve Maharey said today.

Steve Maharey said he was introducing tighter restrictions on the use of the student loan scheme and revised operational requirements for providers who receive funding.

“These rules will improve the use of public funding for tertiary education, increase the responsible use of the student loan scheme, and encourage improved retention and completion rates.

“Compulsory fees and charges should only contain costs without which students would be unable to complete the mandatory academic requirements of the course. New student loan rules will reinforce this expectation by requiring providers (whether public or private) to document the costs that students are able to claim through the student loan scheme. They may be asked to justify the inclusion of items in their tuition fee or course-related costs, such as the costs of equipment that is kept by the student.

“In particular, providers will not be allowed to include overseas travel in their compulsory fees or course-related costs without the specific permission of the Secretary for Education. In general, the Government does not consider it acceptable for providers to include any overseas travel costs, in the costs for which the student loan scheme can be accessed.

“Notice of Terms and Conditions of Funding for PTEs will also reflect a sharper focus on students completing their courses and programmes of study. Providers will also be required to have effective student monitoring and achievement systems.

“Increased audit/monitoring procedures for both PTEs and TEIs will take account of the new requirements on the use of the student loan scheme and student completion rates.

“These changes to the funding policy are an interim measure until further decisions are made about the funding of tertiary education for 2003 following feedback on TEAC’s most recent report,” Steve Maharey said.

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