Students call for an end to means-testing of allowance

Students are calling for the Government to go beyond means-testing when determining who is eligible for a student allowance.

A student's eligibility for an allowance is based on their parents’ income; if both parents make more than $134,204 a year, they do not qualify.

When a student doesn’t qualify for the allowance, parents are expected to offer financial support.

However, many households are not able to do so with Stats NZ reporting that the cost of living in New Zealand has risen by three per cent in the past 12 months.

Connell says while her parents make more money than the threshold, they have other things to worry about financially.

“I know my parents earn together over the required amount for a student allowance, but they have their personal finances.

“Like my mum has a big mortgage on the house she is still paying off and being a single parent, it is going to take her a little bit longer.”

Connell says she has to work 15 to 17 hours a week to afford living costs while studying.

LISTEN: Connell explains how juggling university, placement and work affects her mentally

Victoria University of Wellington Students’ Association (VUWSA) which is running the Student Wage for All campaign says the financial pressure is too much for families.

In a statement to TWN, VUWSA says many families above the current $134,204 threshold “still struggle financially”.

“The pressure is compounded if a family has more than one child going to tertiary study,” it says.

The campaign is lobbying for a universal student wage to make financial aid for students more accessible.

“We firmly believe that instead of a means-tested student allowance, where only some students are deemed eligible, a universal student wage should be implemented.”

The Minister for Universities, Dr Shane Reti, has not yet responded to TWN inquiries.

If students need extra support with living costs, they can apply for student loan living costs, which they are expected to pay back.

Additional support is available for students needing help with other costs such as accommodation, childcare, health, and disability.