Joyce wants to cut govt's student loan bill

Posted By TEU on Mar 4, 2010 |

Tertiary Update, Vol 13 N0 7

Tertiary education minister Steven Joyce wants to cut the government’s student loan bill by removing access to the scheme for students who fail or drop out.

The minister told the” Weekend Herald that over 40 percent of New Zealand’s tertiary education budget goes on student loans and allowances, compared with an OECD average of only 17.6 percent.”  He plans to ‘rebalance’ costs by cutting access to loans for those who fail more than half of their courses. The New Zealand Qualifications Authority is also considering restricting the current open entry into tertiary education for students aged over 20.

“I’d like to see more money going into actually training EFTSs and I’m looking around for opportunities to deliver that in 2011,” Mr Joyce said.

“There is also student support. We want to make sure that is well-targeted. We are not going to change the interest-free loans, but we have to do some work regarding the bad credit finance situation and whether all the money is being spent as well as it should be.”

“We have an unusually high level of student support and people are taking advantage of that, so we are looking at ensuring that the student is making academic progress while they are taking up the loans.”

Unitec chief executive Rick Ede supported the principle of tying student loans to achievement, but NZUSA co-presidents David Do and Pene Delaney were critical.

“We are concerned that moves to restrict entry for over-20s will limit access to those who missed their first opportunities for tertiary education. This would disproportionately affect Māori, Pasifika, and second chance learners,” said Mr Delaney.

Also in” Tertiary Update this week:

  1. Taskforce calls for more certainty for CRI research funding
  2. Employment key to recovery
  3. Wilkinson wants less red tape to dismiss workers
  4. Search and Surveillance Bill

Other news

A self-made millionaire and the key architect behind National’s rise to power recently was named the Government’s top man for the tertiary sector. In his” first interview with student media since taking over from Anne Tolley earlier this year, Steven Joyce talks to OUSA’s” Critic about his road to politics and his plans for, well, all of us.

Over a fifth of the New Zealand population aged between 25 and 64 has attained tertiary education at a degree level or above, according to” Ministry of Education data. This represents a doubling of”  the proportion of New Zealanders in that age group with a degree or above in the decade 1997 to 2007.

Hundreds of students are being turned away from Waiāriki Institute of Technology, prompting a call from its chief executive for the Government to raise the caps on student numbers. -” Rotorua Daily Post. And a 35 percent increase in enrolments has Unitec turning students away for the first time -” In Unison

A British university professor who resigned in protest at the ‘dumbing-down’ of degrees was treated unfairly when examination students he had failed were remarked to pass, the UK Court of Appeal has ruled -” the Telegraph

New Zealand’s apprenticeship system is in for a major shakeup, after evidence that only a fraction of young people are starting apprenticeships, and most of those who start then drop out -” The New Zealand Herald

An American author, whose book on the nuclear bombing of Hiroshima has been controversially dumped by its publisher, does not hold a doctorate from Victoria University as he claims, the university says. -” The Dominion Post

TEU” Tertiary Update is published weekly on Thursdays and distributed freely to members of the Tertiary Education Union and others. You can subscribe to” Tertiary Update by” email or” feed reader. Back issues are available on the” TEU website. Direct inquiries should be made to Stephen Day, email:”

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