Ministry of Education figures released yesterday show that the number of student allowance recipients rose by 26 percent between 2008 and 2009. The figure rose to more than 82,600 students, after having risen 5 percent each year between 2006 and 2008. The amount of government spending on allowances is the highest in almost 20 years.

The Ministry of Education said the increase was largely due to high unemployment, particularly for younger age-groups, due to the economic recession. The reduction of the parental income testing age to 24, and an increase to parental income thresholds, both contributed to increases in allowance recipients.

NZUSA co-president David Do agreed, saying the economic climate has hit both students and families hard.

“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,” said Mr Do.

Tertiary Education Minister Steven Joyce yesterday told 

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that student numbers are likely to fall next year, due to changes to eligibility for student loans, new performance requirements for loans, and the fact that New Zealand is emerging from the recession.

NZUSA’s other co-president Pene Delaney argued that increased spending on student loans would have positive academic effects.

“A 2008 Ministry of Education report, Educational achievements of student support recipients, found that those who receive student allowances do better academically and are twice as likely to achieve successful completion of their studies than those with no financial support. We would hope the Government views increased eligibility to allowances as a tool to increase student achievement,” said Mr Delaney.

Thanks to djbwhizz @ Flickr for the photo