Loan & Allowance Tinkering Fails to Achieve Anything Useful

Loan and Allowance Tinkering Fails to Achieve Anything Useful

Today’s announcement of a four year freeze on parental income to assess student allowance eligibility, and restricting student allowances to the first four years of study is simply tinkering with a system that has its priorities wrong. In addition, the increase of repayment thresholds to 12 per cent of income above $19,084 will cost some Massey students more than $15 a week as working students still have to pay off loans while studying.

“Students are already struggling to balance study with either part-time or full-time work, and increasing living costs,” says Ralph Springett, President of the Extramural Students’ Society. “Why should those who have decided to further their education to make a valuable contribution to society have to bear the brunt of our country's economic situation while the rich get tax cuts?”

Reducing accessibility to the living allowance will not help students succeed in their studies. “What is needed is a better balance between the youth students, and adult and part time students who are more likely to be working, and are more engaged in their studies,” Springett says.

“If the government wishes to increase the success rate of tertiary students while reducing the overall taxpayer cost then it is the government’s Tertiary Education Strategy that needs an overhaul”.

Right now there should be emphasis on assisting part time and adult students who are more likely to find, and continue with, meaningful employment on graduation. “Part time students have an 80 per cent lower loan uptake than full time youth and their study is more relevant to their work.” Mr Springett says. “Why do we not only cut their allowances, we also reduce their take home pay?”

The Government’s Tertiary Education Strategy, which focuses on degree completion for youth, ignores the fact that there are few jobs for youth graduates in the current job market. “No wonder young graduates go overseas to get jobs and escape their student loans. They are set up to fail in the job market, and it is costing the New Zealand taxpayer,” says Springett.

Massey’s Extramural Students’ Society is funded by membership levies and seeks to raise the profile of distance, part time and adult students’ issues through the e-publication Off Campus, and through public discussion.

http://exmss.org/OffCampus/

ENDS

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