Students receiving allowances up more than a quarter

The number of students receiving a student allowance increased by 26 per cent between 2008 and 2009, reflecting the financial burden the recession has placed on students, tertiary student leaders say.

Ministry of Education figures released yesterday show the amount the government spent on allowances in 2009 was the highest in almost 20 years, with 82,600 receiving the benefit.

NZUSA co-president David Do said the figures were a welcome sign the Government had been giving greater support to students, but also clearly showed students were struggling to get by.

"Lower parental incomes mean families are finding it more difficult to support students who may already be forced to live at home due to inadequate student support.

"The recession also meant that students have had difficulty finding summer work, which means they have fewer savings to offset academic and living costs for the rest of the year. This is leading to increased student poverty," he said.

The Ministry of Education website on which the figures appear says a 10 per cent increase in the lower parental income testing threshold for students to $50,318 per annum meant more students were eligible for the allowance. Also, the reduction of the parental income testing age to 24 increased the number of allowance recipients.

David Do said students who received student allowances did better academically and were twice as likely to complete their studies than those who received no financial support.

- NZPA