About the money

With New Zealand students’ collective debt reaching $10 billion in April 2008 and growing by $1 billion every year, you may be wondering how your children can minimise the cost of their tertiary education. Keep reading to find out about the costs involved and how to try and keep them down.

The cost of tertiary study

There are three types of costs to consider if your child is thinking about tertiary study:

Course fees

• Course fees cover tuition and can range from a few hundred to a few thousand dollars for each year of study. The actual fee depends on the course taken and the provider your child enrols with.
• As a rough guide, full-time degree-level courses usually range from $4,000–$11,000 a year, depending on the course of study.
• Fees are structured based on the complexity of the course (and therefore the skill of the tutor/lecturer), and whether it is a full-time or part-time course.
• Course fees are reviewed every year. The best time to enquire about course costs for the following year is near the end of the student calendar year.
• The student loan scheme can pay your child’s course fees. Your child needs to apply for this and the fee is paid directly to the tertiary provider at the start of the course.

Sorted website - fees for domestic students
Sorted website - is your qualification value for money?
Sorted website - how much will your studies cost?

Living costs

Sorted website - sample weekly expenses for a student living in a flat in Wellington
StudyLink website - find out if your children are eligible for an accommodation benefit
Leaving home to study – how to help your child prepare

Course-related costs

• Course-related costs are for things like textbooks, stationery, tools and equipment. Some courses require more expensive equipment than others.
• A student can borrow the amount they need for course-related costs as part of their student loan – up to $1,000 a year. They need to present StudyLink with written quotes for the items they want, and receive this money in cash to purchase the equipment.

Student loans, student allowances and scholarships

Student loans

Your child may be eligible for a student loan. A student loan is money from the Government to help students pay for course fees, course-related costs and living costs while they are studying. Make sure your child understands:

• how the student loan system works and what interest the loans are subject to
• that it’s best to just borrow what you need – the less they borrow, the sooner they will be able to pay it back
• what responsibilities they have to pass the course and pay the money back
• how long it will take them to pay the loan back and when they’ll need to start doing this
• when the loan payments are made (and the date when the money will go into their bank account) – so that they have enough money in the meantime.

Paying back a student loan

Student allowances

• Your child may be eligible for a student allowance administered by StudyLink. A student allowance is a weekly payment to help people with living costs while they study full time. This doesn’t have to be paid back.
• Your child could get a student allowance to cover living costs if your income is under a certain amount. If your child is eligible for a student allowance, and living away from home, they could also be eligible for an accommodation benefit, which is a top-up of the student allowance.
• Students often have part-time jobs to help cover the costs of living. Students can earn up to $185.73 a week on top of a student allowance without their student allowance payments being affected.

StudyLink website - does your child qualify for a student allowance?

Scholarships

Scholarships, grants and awards are a great way of funding tertiary education.

• Scholarships can apply at different levels, whether certificate, diploma, degree, Masters or beyond. They also cover different things, from tuition fees only, to all course costs and some of your living expenses.
• There are scholarships, grants and awards available to students from particular regions or to study in a particular region of New Zealand.  
• BreakOut is a database that holds information on over 2,200 funding schemes that cover study, professional development, research, travel, arts, sport, and community projects. You can use BreakOut for free at Career Services regional offices, public libraries and many more locations.

Tertiary education provider-funded scholarships, grants and awards
Government, industry, and interest groups’ scholarships, grants and awards
Scholarships, grants and awards for Māori and Pasifika

Paying less for tertiary education – money saving tips

Researching different ways of getting qualified is worth it because there may be a more cost-effective way to study that suits your child’s situation. Here are some options to consider:

• In some industries, on-the-job training is available. This type of training is often subsidised by employers. Talk to people in the industry to find out which training is most recognised.
• If tertiary study is the best option, make sure that you compare the course fees of a few different education providers before you make a decision. Remember, cost isn’t everything. Compare the quality and reputation of the course as well.
• Distance learning could be a cheaper option for some students, as they could study from their home town, reducing their living costs.