Student Loan Eligibility Rules Just Ain’t Right

Reason Number Five: 200 – 300 Tutors

At least 200 – 300 tutors will be out of a job if implementation of the new student loans and allowances eligibility rules is not delayed – based on the Government’s own calculations.

The Government has estimated that only 10% of students enrolled in courses not presently funded by the TEC would transfer to TEC funded courses once the new eligibility rules are implemented. Some 4000-6000 students (the part and full-time equivalent of 3000 efts) would be eliminated.

Based on TEC’s own student to teacher ratio guidelines, 3000 efts equals 200 – 300 tutors (a conservative estimate given those 3000 efts are actually comprised of a mixture of part and full-time students).

“Without even taking into the account the impact of implementing this policy on administrative staff, management staff or contractors, it is going to contribute several hundred unemployment casualties,” said Brijesh Sethi, Spokesperson for the PTE Budget Policy Awareness Group.

That is only part of the story.

Reason number six to follow on Monday.

The Issue:

Without warning or consultation with the sector, it was announced that only student enrolled in courses funded by the TEC would be eligible for student loans and allowances, and that this new rule would apply from January 2007.

More than 100 PTEs provide courses not funded by TEC. Between 40 and 50 only provide courses not funded by TEC. Many of these PTEs will be forced to close at the end of the year.

The PTE Budget Policy Awareness Group is calling for a fair and reasonable transition period to the new loans and allowances regime.

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