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OECD Confirms Need for More Student Allowances

OECD Confirms Need for More Student Allowances

Students are today welcoming an OECD report that acknowledges "the current system does not address to the full extent the financial barriers students face in accessing tertiary education".

"The OECD has confirmed what students have been telling the government for years, that access to allowances is far from adequate and that the amount students receive if they do receive an allowance does not cover basic living costs," said Joseph Randall, Co-President of the New Zealand Union of Students (NZUSA).

Prior to 1992, a large number of New Zealand tertiary students received a living allowance while studying. The numbers have been slashed from 85.4 percent of full-time students receiving an allowance in 1990, to less than a third in 2005.

"With less than a third of all students receiving an allowance it is not surprising that New Zealand's uptake of student loans is 407% to the OECD average."

"The OECD points out that it is ridiculous to means test students to determine student allowance eligibility based on their parental income until they are 25."

To address this issue, the OECD suggests that both the living costs loan entitlement and the student allowance be raised, and that the means-testing allowance regime be dealt with. To quote from the OECD's report, "in a country where children become fairly independent from their parents around their late teens, the age threshold at which parents' income is taken into account for allowances' eligibility seems too high."

NZUSA is calling for the introduction of a Universal Living Allowance for all tertiary students and the immediate increase to allowance rates for those who receive a student allowance.

ENDS

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