When I was studying at the University of Canterbury, there was a student debt clock on the wall of the main dining room in the Student Union building. When I started it was about N.Z.$4 billion in 2000. It was a depressing sight. The speed with which it kept going up was shocking – in the space of a lunch time period you could watch it put over $1,000. I queried the accuracy of it and got told by both the Student Union and the Accountancy Department that it was. Whilst watching the numbers soaring, it got me wondering about the best approaches to supporting students academic endeavours without financially crippling New Zealand.
There was a Emergency Unemployment Benefit. This could be applied for by students who have been working part time to help cover living costs whilst studying and found that their own funds cannot bridge the gap. This was New Zealand First policy during the 2002-2008 period.
My own idea is of an universal tertiary allowance proportionate to the amount of time one spends studying a week. An EFTS 1.0 student is one who is understood to be committed to full time study, and can only work if they have time left over after studying. For them the allowance should be a living wage of $680 per week, or $17 x 40 hours. It enables them to pay their fees on time and should supercede all existing tertiary education allowances and benefits.
The way it would work is, if a student is studying 15 hours or more would get half of the allowance. Those doing say 30 hours or more would be eligible for the full sum. Students working part time whilst studying would only be eligible if their work was casual or less than 10 hours per week.
During its time in office, National removed the Postgraduate Allowance, which was to support students doing Postgraduate qualifications such as Certificates, Diploma’s, Masters or Doctorates of Philosophy. At the time it was justified by the then Minister for Teritary Education along the lines of: “students can go on the student loan scheme as it is interest free”, whilst quite missing the general problem with loans being that at some point they have to be paid back.
I support any plan where a student has a portion of their debt wiped for every full year they spend working in New Zealand once their study is completed. One such plan could be a dollar for dollar scheme, whereby for every dollar paid in tax, a dollar is wiped from a students debt. So, a person with a $20,000 debt who is paying $5,000 in tax per annum would be all done in 4 years. Such a win win scenario will make New Zealand considerably more attractive to New Zealand students who might have been eyeing a one way ticket to another country.
All these years later and with the promise of $50 extra per week in the pockets of students studying starting on 01 January 2018, I am once again wondering whether tertiary support for students is appropriate and if not, what can we do about it?