Budget puts more in students' pockets

By Stuart Dye, by Stuart Dye

Head of Print Content·

19 May, 2005 08:11 PM2 mins to read

Science student Damian Betham will benefit next year from the Budget. Picture / Brett Phibbs

Damian Betham says his approval for a student allowance is a bitter-sweet pill. He desperately needs the $180 a week, but it restricts him to a maximum 10 hours a week work in his factory job. Any more and his allowance would be chopped.

But tertiary changes in the Budget mean that from next year the 19-year-old will be able to earn an extra $45 a week.

"I have to be really careful budgeting each week and this would be a big difference," Mr Betham said.

Under the changes, the amount students can earn each week before their allowance is affected will rise from $135.13 to $180. And earning more than that will see a dollar-for-dollar abatement rather than a loss of the entire allowance.

Mr Betham, a second-year science student at the University of Auckland, is one of 3500 who will be affected by the change and he said he would jump at the chance to work more.

Budget 2005 will also see allowance scheme eligibility widened. Changes include:

* A higher level for allowances eligibility (by $3400) for about 2500 students under 25 with separated parents;
* Reducing the parental income level for allowances eligibility by $7000 per additional child for 5000 students from larger families; and
* Raising the Trainee Intern Grant for final year medical students by $10,000.

Education Minister Trevor Mallard said the initiatives were designed to lower student loan debt.

But the Students Association said last night the "minor changes" would do little to address the $7 billion student debt.

"The best thing students will get out of this Budget is the heat it will provide from throwing it on the fire while they study for their upcoming exams," said Andrew Kirton, co-president of the association.

Jesse Gale, president of the Medical Students' Association, said the trainee intern grant boost would not solve the problems faced in medical education, "but it does make a big difference to the personal hardship of students".