University students squeezed at both ends

The number of students receiving allowances is plummeting, while university fees are rising.

Critics said last night that the Government was "giving with one hand, but taking with the other".

Studylink figures show the number of students getting allowances is dropping, despite Labour's Budget 2004 promise that 36,000 more students would be eligible this year.

Only 54,621 students received an allowance in the July to September period this year - a drop of almost a quarter in four years and 7 per cent less than at the same time last year.

Further misery has been heaped on the students with university fees for next year going up by 3.5 to 10 per cent.

"While the Government promises to give with one hand, it is taking with the other by letting fees increase and giving less in allowances," said Nick Kelly, president-elect of Victoria University's students' association.

"While students support getting rid of interest on student loans, this in itself is not enough."

Camilla Belich, co-president of the University Students' Association, said a 7 per cent decrease in students receiving allowances over a year showed that small changes to allowance eligibility criteria had failed.

In the 2004 Budget, the Government increased both the upper and lower parental income limits for allowances for single students under 25.

"The answer to this problem is simple and long overdue," said Ms Belich. "A living allowance for all students would mean students would know what they are entitled to when they study."

Co-president elect Conor Roberts said fees charged by tertiary institutions also had to be targeted.

The University of Auckland has announced average undergraduate fee increases of 3.9 per cent for next year. Massey, which had no rise last year, and Victoria University in Wellington made special requests to the Government for fee increases of up to 10 per cent on some programmes.

Fees at Otago rose 5 per cent, at Lincoln there was a 4.4 per cent rise and Waikato raised its fees by 3.42 per cent.

"An immediate priority must be to ensure that public tertiary education is adequately funded," said Mr Roberts.

The Government is involved in a three-way process with universities and university staff to address tertiary finance.

Meanwhile, Labour's election manifesto goal was to have half of all students receiving an allowance by the 2006 Budget.

Tertiary Education Minister Michael Cullen said the drop in allowances was because enrolments were down on expected numbers and there were more part-time students. 
 

Sinking payout

Student allowances for annual third quarter:
* 2001 - 67,741
* 2002 - 66,733
* 2003 - 61,698
* 2004 - 58,652
* 2005 - 54,621