STUFF.CO.NZ: New Zealand First is promising to introduce universal student allowances for tertiary students if in a position to after this year's election.
Party leader Winston Peters repeated the party's policy during a speech to Otago University students today.
"A universal student allowance would encourage more students into tertiary education," he said.
"It would reduce the dependence of loans and the cycle of huge debt that many of our graduates face, especially those who seek the highest qualifications or choose careers in areas such as medicine."
The Greens also have advocated for a universal allowance.
Education Ministry estimates put the cost of the scheme at $182 million a year.
The ministry also estimated a $33m reduction in operating expenditure over the same period, as some existing costs of the current student loan scheme are removed and total borrowing declines.
In July, Tertiary Education Minister Pete Hodgson said he had asked the ministry to prepare the figures but that "should not be construed as a signal the Government intends to introduce such a policy".
About 57 percent of students get an allowance and about 47,000 full-time students miss out because they earned too much or, for students aged under 25, their parents' income was too high to qualify.
The student allowance is $122 a week for those under 25 and living at home, $153 a week for those living away from home, and $184 for those aged over 25.
May's budget gave a 10 percent increase in the parental income threshold, lowered the age for parental income testing to 24 and increased the amount students can borrow for living costs from the student loans scheme by $5 to $155 a week.
Ministry documents showed since 2001 there was a 32 percent fall in the number of students eligible for allowances as parents' incomes rose.
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