Nicki McDonald: A hand-up beats a handout

Improving educational achievement among low socio-economic groups was ranked first among the five priorities to improve New Zealand socially, economically and competitively, when the Ministry of Social Development briefed its incoming minister after the election.

It makes sense to focus on the under-achievers. Low educational achievement has direct links to a range of problems, including crime, limited or low earning potential, and dependency on benefits.

But we also cannot afford to ignore those who are succeeding in our low-decile schools but face financial barriers to higher education. The cost of doing so is potentially just as high.

As Treasury identified in its own briefing to the incoming Government, tertiary participation rates of those aged 18 to 24 have not been growing, yet an educated workforce is fundamental to economic growth.

The OECD estimates that the estimated long-term effect on GDP of adding just one year to a person's education is from 3 to 6 per cent per capita.

Given that New Zealand has struggled since the 1990s to achieve productivity gains of more than 1 per cent, supporting achievers about to leave low-decile schools would seem a sound investment.

They deserve it. Students in low-decile schools often come from low-income families and the statistical odds are stacked against them.

Last year, 21 per cent of students from decile one to decile three schools left with few or no qualifications, compared with 6 per cent from decile eight to 10 schools.

Ethnicity doesn't help the odds. Last year, 25 per cent of Maori and 16 per cent of Pasifika left school with few or no qualifications, compared with 10 per cent of New Zealand European students.

Those that beat the odds are doing well. Yet when it comes to the further education that will enable them to reach their full potential, it is often lack of money that stands in the way.

The First Foundation was formed in 1998 to help address these financial barriers, and allocated three scholarships to students from low-decile Auckland schools.

This year, 21 were allocated throughout the country to students from a diversity of ethnic backgrounds. They will join the 44 already on our books, working their way through their degrees.

Among the 21 students awarded scholarships this year, several have lost one or both parents, and others have been juggling work and school to help support themselves or their families. Despite that, they have all shown the tenacity and maturity to achieve not only academically but also in sports, culture and community service.

Neither are these students a handful of exceptional cases. For every one who earned a scholarship, two more high achievers had to be turned away.

More than 40 companies - including the main sponsor, Telecom - have joined the First Foundation to give financially disadvantaged students a hand-up, but not a handout.

These companies are providing part-time work, beginning in the student's last year of secondary school and continuing for three years of tertiary study.

Students commit to saving $1200 a year from their wages towards their tertiary fees.

In addition to paying part-time wages, their partnering company contributes $17,000 in financial support over the four years of the programme.

A volunteer mentor helps the student to meet agreed goals. The foundation monitors performance and provides development opportunities.

This monitoring and support is important, because although all our students have demonstrated the ability to beat the odds, they face real challenges when they move into tertiary education and leave the comfort zone of a supportive school.

Admission to university is no guarantee of graduation and the odds remain stacked against some of our students.

The University of Auckland's Equal Opportunity Office says that, in general, students from low-decile schools tend to find the work a struggle. Pass rates for Maori are improving but are still 6 per cent below the overall pass rates. For Pasifika students the pass rate is 20 per cent below.

A First Foundation scholarship helps shorten the odds for students of all ethnicities.

Of the 99 students who have received scholarships since our inception, only 14 have dropped out.

In a few weeks school will end, and if the trend runs true to form, more than 20 per cent of those leaving will do so with no qualifications and not much hope of a future.

Our scholarship students will be knuckling down to their jobs, their savings commitment, and their study goals. It makes good sense to help those who are working hard to help themselves.

* Nicki McDonald is general manager of The First Foundation.