For immediate release 02 May 2012

Loan and Allowance Tinkering Will Not Achieve Tertiary Goal

The recent announcement of changes to allowance eligibility and repayment thresholds is simply tinkering with a system that has its priorities wrong.

“If the government wishes to increase the success rate of tertiary students while reducing the overall taxpayer cost then it is the Tertiary Education Strategy that needs an overhaul,” says Ralph Springett, President of the Extramural Students’ Society.

Reducing living allowance accessibility will not help students succeed in their studies. Students are already struggling to balance study with part time work and increasing living costs. “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.[1]

“Right now there should be emphasis on part time and adult students who are more likely to find, and continue with, meaningful employment on graduation,” Springett says. “Part time students have an 80 per cent lower loan uptake than full time youth and their study is more relevant to their work.”

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.

ENDS

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