The Government has today taken the first step towards fulfilling its major election promise of making tertiary education and training more affordable for all New Zealanders.
The Government’s first 100 days programme includes introducing a $50 a week boost to both student allowances and loan entitlements for living costs and making the first year of tertiary education fees-free from 1 January 2018.
“Today we are announcing the first of these policies is in place as promised. This will make more than 130,000 students $50 a week better off," Education Minister Chris Hipkins said.
“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week." the Minister further added.
According to the latest increase in the allowance payments for single students, someone aged under 24 and living away from home, for example, will rise from $177.03 to $227.03.
The maximum amount that students can borrow will rise from $178.81 to $228.81.
However, no change is being made to eligibility rules for student allowances or loans.
The government is hoping that this initiative will be helping New Zealand and New Zealand economy, as more number of jobs in future will be requiring tertiary-level education or training.
In addition to these measures, the Government is also in line to further adjust the student allowance rates and loan living costs by April 1, 2018, according to an increase in Consumer Price Index (CPI).
The Accommodation Benefit is also scheduled to rise by $20 a week in 2018 to a maximum of $60 a week for students,” Mr Hipkins said.