STUDY LINK Financing your tertiary study

1. STUDY LINKFinancing your tertiary study

2. What is a Student Allowance? • The Allowance is available to students 18 years+ (or 17 years if they completed Year 13). It does not have to be paid back • Eligibility for the Allowance is determined by a parental income test. This is based on the parents’ combined gross income. Evidence of parental income must be provided to Study Link • To be eligible for the Allowance, a student must be studying full time and be a New Zealand citizen or resident (resident visa for 3 years) • A student can earn up to $217.22 gross p/week while studying & still be eligible for an Allowance • The amount of the Allowance varies, according to: parent income, whether living at home or away from home, other siblings aged 16-23yrs who are also studying. (Reduction to Parent Income by $7000 per sibling) • The full amount of the Allowance is $230.12 per week (if living away from home and aged under 24 years) • Students receiving an Allowance and living away from home may be eligible for an Accommodation Benefit of up to $60 per week • The Student Allowance and Loan living costs are paid from the course commencement date to the end of the course • You must pass at least half the course to retain eligibility for the Allowance the following year • Study Link has an on-line calculator to assist students and parents in assessing eligibility for an Allowance. Go to: https://www.studylink.govt.nz/products/rates/calculators/parental-income-calculator.html

3. Example Student Allowance Student Under 24 Years Living at Home: Student Under 24 years Living Away From Home:

4. What is a Student Loan? • The Student Loan is a LOAN – it must be paid back! • The Student Loan has three parts: • COURSE RELATED COSTS To assist with course expenses, e.g. books, equipment; maximum of $1,000 per year • LIVING COSTS To assist with accommodation costs; maximum of $231.92 per week • First Year Fees Free (Up to $12,000) - Check Eligibility www.feesfree.govt.nz • Course Fees after First Year Fees Free • To be eligible for a Student Loan your course of study must be an approved full time course) and you must be a NZ citizen or permanent resident (resident visa for 3 years) • You must also pass at least half of your course to retain eligibility the following year • There is an administration fee of $60 to set up a Loan account • If you have a Loan, you can still work and earn money while you study (there is no limit on earnings) • The Student Loan is interest-free, provided you are residing in New Zealand. If you leave NZ for more than 6 months interest will be charged from the day you leave the country (4.3%) • A student can apply for a loan for a maximum of 7 years

5. Student Loan Example –Bachelor of Information Technology3 Years Fulltime

6. Student Loan Example –Diploma in Engineering2 Years Fulltime

7. Applying for Loans and Allowances • Student Loan and Allowance applications are made on-line via the Study Link website: www.studylink.govt.nz • A Study Link on-line application session will be held in school in October • Students will have to provide the following information and evidence to Study Link: • Bank account details • IRD Number • Passport or Birth Certificate • Evidence of Parental income and sibling Birth Certificates may also be required if a student applies for an Allowance • Step 1: Create an account and a “Real Me” log-in • Step 2: Complete the eligibility test – this is compulsory for all applicants • Step 3: Complete the application for Student Loan and/or Allowance • Once an application is made students are given an online account which provides access to MyStudyLink • This can be used to update details, track the application, view payment information and contracts • Following application, Study Link will send out a contract to sign

8. Repaying Your Loan • A Student Loan is interest free. However, interest of approx. 4.3% is charged once you leave NZ for more than 6 months from the date you leave New Zealand • You must start repaying your Loan once you earn more than $19,094 per annum ($367 per week gross) • The IRD will make deductions from earnings at a rate of 12% • You can choose to repay the Loan at a faster rate

9. Tips on Financial Survival PRIOR TO STUDYING • Save as much as you can – try and get a part time after-school or holiday job • Develop good relationships with current employers so you can get holiday work during the year if possible. • Use family support – e.g. work for parents; money instead of gifts • Apply for scholarships (see the givME and Money Hub websites on the Waimea College Moodle site) • Do some trial budgets • Be prepared – the reality is that you will be poor! Accept that a need is different to a want! WHILE STUDYING • Change your existing bank account to a student package (less fees) • Get a Community Services Card (reduces medical fees etc) • Use on-campus facilities which are cheaper (e.g. student Health Centre) • Limit your spending (e.g. use cash instead of EFTPOS) • Check your budget and bank statements regularly to avoid a crisis • Don’t spend money on food if you are already paying for meals in a Hall of Residence • Find some campus part time work, e.g. library, tutoring • Check your entitlements, e.g. IRD tax codes, Student Hardship, Unemployment Benefit over the summer break etc. • Remember: Overdraft = Debt; Credit Cards = Expensive Debt IN TROUBLE? • Use Campus Financial Support team • Contact Study Link – there may be emergency grants available • Talk to your family

10. Study Link Assistance For help and assistance with your Study Link application, you can contact Study Link via email through website or phone: www.studylink.govt.nz 0800 88 99 00

11. To access the School Leaver Guide to Student Loans and Student Allowances, please visit http://www.schoolleaver.nz/student-loan-e-book