Auckland University Student Association is irate that the Labour Party’s proposal for a Universal Student Allowance has been labelled an “unjustified election bribe.”
Around one third of students are receiving a student allowance but under a Labour Party pre-election proposal,' the allowance will be extended to cover all students, regardless of parental income.
Currently, a student’s eligibility is based on both parent’s income with a threshhold of just over $45,000.
The Universal Student Allowance will be phased in gradually, the catch being that some students will have to wait four years before becoming eligible. Ultimately, fifty thousand additional students will be eligible.
When the allowance is fully phased in by 2012, it will cost the country around $210 million.
“It pales in comparison to the $11 million Labour spent in tax cuts this year,” says Auckland University Student Union President, David Do.
However, Auckland University Vice Chancellor, Professor Stuart McCutcheon, who has called the Universal Allowance an “unjustifiable election bribe” believes that the money is misdirected.
He said earlier this year in the Auckland University News that it “would further impoverish universities at a time when Government support of students is already the most generous of any western country.”
“There is no logic in providing students with cheap access to a university system that is declining in quality.”
New Zealand currently spends 42 percent of its tertiary budget on financial aid for students compared with an Organisation for Ecomomic Corporation and Development (OECD) average of 18 percent.
Mr Do also supports the University’s need for funding but says that students have a justified case.
“It will enable students to work less hours to cover their living costs. Therefore, they can achieve better grades and higher education.” It would also help alleviate student debt.
Claims that student allowances are subsidising ‘underachieving students’ are myths, the Student Association said in a press release.
Underachievement could be attributed to students stressing over money or suffering from fatigue after long hours in paid work. Students with allowances are able to work fewer hours.
A Ministry of Education report shows that students who are supported in their studies were much more likely to complete their studies successfully than those who weren’t supported.
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