Boost for tertiary education

The Government has announced that it will be introducing a new programme to make tertiary education and training more affordable.

From 1 January 2018, the Government’s first 100 day programme will involve providing a $50 a week boost to both student allowances and loan entitlements for living costs and will make the first year of tertiary education-fees free.

These changes will affect more than 130,000 students New Zealand wide.

Student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week. The increase will be $1000 net a week where the allowance rate reflects the living costs for two adults.

Allowance payments for single students aged under 24 and living away from home, for example, will rise from $177.03 to $227.03. The maximum amount that students can borrow will rise from $178.81 to $228.81.

Student allowance rates and loan living costs maximum will be further adjusted from 1 April 2018 in line with any increase in the CPI. The Accommodation Benefit is also scheduled to rise by $20 a week in 2018 to a maximum of $60 a week for students.

The 2018 changes for the first-year of fees-free educations and training are just the first step in the process as the Government rolls-out a full programme of three years’ fees-free tertiary education by 2024 for New Zealanders.