2 May 2012

Students deeply concerned at support cuts

Students are deeply concerned at Government intentions to cut support for students. In the lead-up to this month's budget, Tertiary Education Minister Stephen Joyce and Prime Minister John Key have both signalled that students will receive less government support. Eligibility for student allowances is set to be further restricted, while the repayment rate for student loans is likely to rise from the current 10%.

Student allowances currently provide support for students from low-income families. To receive a full student allowance, students must come from a family with a combined income of less than $55,026. "These cuts to student allowances will limit eligibility." said Arena Williams, President of Auckland University Students' Association (AUSA). "Simply put, students who have the potential to achieve top results in tertiary education won't be able to study. These kids lose and their communities lose."

Research has found that up to 15% of students are in dire financial difficulty.[1] "We are frequently approached by students seeking financial support and even food parcels," said Sam Bookman, Education Vice-President of AUSA. "Even at the full allowance of $206.73, it's very difficult to afford rent, food and textbooks. Everyone from the University of Auckland Vice-Chancellor to the Prime Minister's own Chief Science Advisor have expressed concern that Auckland University's international ranking is slipping. However, if students are placed under this kind of financial stress, it's inevitable that their grades and research are being affected."

The flagged increase in the student loan repayment rate is also of considerable concern. Currently, students must start repaying 10% of their income once it exceeds $19,084, well below the full-time minimum wage. "The current repayment rate for student loan borrowers of 10% is already high." said Ms Williams. "Graduates earn less than the mean full time wage in their first five - ten years of work. The system punishes people who're trying hard to get ahead in their careers and don't have disposable income."

Concern has also been expressed at the effect the budget may have on Maori and Pacific students. "Universities around the country are putting in efforts to recruit higher numbers of Maori and Pacific students," noted Pania Newton, co-President of Nga Tauira Maori, Auckland's Maori Students' Association. "It's unfair to tell these students that they should be entering tertiary education to do better for their families and communities, but not providing the support required to get them there."

According to Ms Williams, the changes will undermine New Zealand's reputation as a country where fairness is rewarded, and equality of access is strived for. "It's the government's role to facilitate equitable access. New Zealanders won't accept a tertiary system which only allows kids from rich families to succeed. If we need to pay for allowances to get clever kids through so that they can contribute to the economy that my generation will be left to manage, then that's money well spent."

The recent announcements follow a pattern of gradual reduction in Government support for students groups. Past cuts have targeted solo parents, older students, recent migrants and those in long-term study.

[1] Baseline Report of the Graduate Longitudinal Study New Zealand (GLSNZ).

ENDS

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