Student Finance and Loans

Loans... When Free?

Money or Finance is generally required for higher level study in New Zealand, which can include loans, living allowance, grants, and depending on personal circumstances, earning from wages and salaries. There are avenues to apply for financial aid, so as to meet your living and educational needs as a student, important if studying full time at an approved NZ tertiary or learning institution, without employment or additional income. NZ's Study Link, Banks, WINZ (NZ Work and Income), Scholarships, Institutional, Family, Trust grants, and related entities can provide monetary aid to help for your course, semester(s), and daily living expenses when enrolled. This includes Universities, Polytechnics, Private Training Establishments (PTE's), Institutes of Technology, and Wananga (Maori way of learning Institutes). Image by Svilen001.

Loan application amount depends on a range of factors, and can include prior academic history, English language ability, school credit results or educational achievement for secondary school students (NCEA) - a section of NZQA which is a Government body responsible for ensuring that NZ qualifications are valued and credible at both national and international levels. Other loan criteria include age, marital status, no. of dependent children, NZ citizenship and immigrant status, living circumstances (e.g. if independent), asset wealth, additional income sources, whether if currently employed (or unemployed or in-course active employment), personal debt, prior outstanding Study Link loans, and perhaps a hybrid of such factors amongst others. Hence it is important to understand the type and level of finance you are entitled to, depending on your overall circumstances, including whether if your course is defined as full-time, or even part-time, to meet specified criteria in your loan application.


NZ Student Loan and Related Organizations

Study Link NZ (http://www.studylink.govt.nz/)
Since 1992, Study link has provided and maintained loans to help students with their studies, through the interaction of the Ministry of Education, Ministry of Social Development, and Inland Revenue. There are basically two segments - Student Allowance and Student Loans, relating to living costs, type of accommodation (e.g. if renting, flatting, motel, apartment, at parental home, etc) compulsory fees,  and any in-course expenses when enrolled in a Tertiary Education Commission Approved Course (TEC). The study link site has information including entitlement regarding full time and limited full time, citizenship, refugee status, accommodating benefits, age requirement, employment earning to allowance ratio, stand down periods, and other important requirements for assistance. This includes the equivalency factor (EFTS) for full time study. There is also general information at the Ministry of Education web site.

Chart of Student Loans

(Click for Larger View. Data Source: Education Counts)

Also important once getting a loan, it needs to be paid back in a timely manner, even when overseas, as the NZ Government has implemented legislation of a student loan scheme bill to recall millions of dollars outstanding, with an averge loan (debt) of about $18,000 and around 2 billion in total owned by NZ overseas graduates. If interested, you can download comprehensive statistics in excel format, regarding amounts borrowed, forecasts of repayment times, number of borrowers, overdue repayments, and more at this Government Agency and also the study loan scheme annual reports. Now don't go running off, or forget, or whatever. However the NZUSA has campaigned with others to increase funding for public tertiary institutions, and that the Government has decreased total expenditure for tertiary education. Also that fees have risen to recover funding decreases. The NZUSA 2010 expenditure and income report (300 page PDF file - though the report seems to be multi-duplicated), has key findings relating to high education costs, student expenditure, income and employment, loan debts, and other topics.

Latest News about New Zealand Student Loans

Video of Student Allowance and Education in Wellington

The Student Allowance	Education in Wellington

Inland Revenue Department ( http://www.ird.govt.nz/studentloans/)
New Zealand's Tax agency commonly known as IRD, are responsible NZ Student loans from Study Link. Assessment, repayments, collections, debt levels, interest rates and repayment threshold, loan schemes acts (from NZ parliament) and related matters are administered by the IRD. Visit to utilize their online calculators, tools, guides and relevant forms regarding repayment of your loan. You can register online.

 

Graph of Percentage of Borrowers Who Left Study in 2000 Who Had Repaid All, Some or None of Their Student Loans by The End of 2009

(Click for Larger View. Data Source: Education Counts)

Loans Sorted!

Sorted NZ (http://www.sorted.org.nz/)
An independent money guide resource centre, encompassing a range of finance, budgeting, debt management, and saving advice, for categories such as Insurance, Investments, Mortgages, Trusts, Retirement, and also for Students. Has sound advice and tips for sources of money, discounts, budgeting and more. Perhaps utilize the student loan and qualifications calculator. Or maybe download information (PDF from IRD) regarding repayments. Also the 2010 reports from Government Stats, regarding No. of borrowers, average borrowings, and other data. Image of happy girl by photostock.

NZ Banks
Major banks provide loans, and student account packages if studying part or full time at a approved tertiary institution, and can include a graduate account. Age requirement is generally 18 years with minimum enrollment of 1 year. There are also International student packages, with a range of features not unlike NZ citizen packages, but generally include foreign exchange banking benefits. Need to compare features, services, and benefits at each bank to select what is suitable, or perhaps find out from other sources, e.g. family, friends, online forums, and the banks themselves, either online or direct contact with the banks.

As with any form of banking, need to carefully compare interest rates, any fee waivers, overdraft limit, visa debit and bank card costings and duration, mobile services, text alerts, phone banking, online access, campus access (e.g. eftpos and atm's) and other features. Some banks provide migrant consultants to help foreign students. Packages could change, with new or amended interest rates, features, benefits, and promotions to enhance banking needs. Hence perhaps check NZ bank's websites periodically to evaluate if another bank may have packages more relevant to you. Established New Zealand banks include National Bank, ASB, Westpac, BNZ, ANZ, and Kiwibank.

Summary
Being a student involves expenses for not only studying a course, but for travel, accommodation, books, materials, club membership, food, research or field trips, with personal consumer purchase and  entertainment costs. Some full time fees can cost up to $5000 or more. So balancing your expenditure, with commitment to studying and your lifestyle choice, is important to avoid any undue financial strain. But by applying your student finances and any supplementary loans carefully should help in a better position for your studies - and your future.

Student Finance and Loans