Government Picks on Old People For Once

Government Picks on Old People For Once

Student Allowances are being restricted once again, with mature students now being targeted by cuts to the scheme. As of next year, the Allowance’s 200-week limit will be reduced to 120 weeks (approximately three full years of study) for students aged 40 years or over on the date their studies commence. If a student over the age of 40 has used their 120 weeks in the past, they will no longer be eligible to receive the Allowance. They can, however, continue to borrow interest-free under the Student Loan scheme.

The new rules will apply from January 2014, but a stand-down period for some current students will be in place, meaning that the new changes will not kick in fully until 2015. Figures released by the Ministry of Social Development show that 783 students over 40 are currently studying in New Zealand, with 21 at Otago Polytechnic and 19 at the University of Otago.

Otago Polytechnic Students' Association president Rebecca Swindells says she has already spoken to students who are planning to withdraw from courses because they will no longer be able to afford to study.

Labour Party Tertiary Education Officer Grant Robertson told Critic that the changes were “yet another example of National limiting people’s opportunities.”

Robertson believes it is important for students over 40 to have access to the Allowance. “In this day and age, people often change jobs and need to retrain,” he said. Robertson explained that many courses are too time-consuming for students to be able to hold down a job on top of training, which means that some courses are out of reach for older students. “Everyone knows you cannot live off just the loan.”

Robertson told Critic that Steven Joyce, the Tertiary Education, Skills and Employment Minister, “hates the interest-free student loan policy.” Knowing that he would be in “huge political trouble [if he were to stop interest free loans],” Robertson says that “[Joyce] has instead just hacked away at eligibility for allowances” and that “his ultimate goal is to get rid of allowances for good.”

Joyce lashed back at this statement, telling Critic that “there is absolutely no intention to remove student allowances and Grant Robertson is just scare mongering. Once again he is pretending to be as fiscally responsible as the Government, but then opposes every single spending change the government makes.

“The Government has sought to focus student allowances more on students from low-income families and the early years of study - which was the original intent of the policy.”

Joyce said the changes are necessary to reduce the cost of student support, which ballooned from $385 million in 2007/2008 to $644 million in 2011/2012.

When asked what he would ideally do with the Student Loan system in the future, Robertson said he would advocate for a “review of the entire system.” All the changes that have occurred recently – including limits to allowances and the seven-EFTS loan restrictions – have been incremental, and there has been no comprehensive look at the loan system for years.

Robertson said that there had been particular issues with psychology students. Many have completed an undergraduate degree, but postgraduate study, which will now be significantly more expensive, is necessary for those who want to advance their careers. Otago’s psychology department is one of the largest in the country.

The change will also have a disproportionate effect on women, who constitute the majority of mature students.

OUSA President Francisco Hernandez says that “OUSA is fully against [the changes].” Hernandez describes the changes as part of “a consistent trend to undermine the education system.” He intends to work with other students’ associations to voice their concerns collaboratively.
This article first appeared in Issue 25, 2013.
Posted 2:29pm Sunday 29th September 2013 by Josie Cochrane.