Tertiary education is funded by a combination of government subsidies and student fees. Students who are permanent residents can access student loans and allowances to assist with fees and living costs (see www.workandincome.govt.nz). There is also a hardship grant for those already enrolled on a course but who have an urgent need for financial assistance.

Standard yearly fees are between $4,000 and $5,000. These figures are not based on the student’s ability to pay. Fees can be paid via a training incentive allowance, scholarship or sponsorship.

Tertiary education institutions have been criticised recently for their high fees. It’s also been pointed out that funding has not kept pace with costs or inflation. Some say this is the reason behind the skills shortages in the country, as graduating students head off for well-paying jobs in other countries to pay off their student loans. As a result of the criticism, education funding has come under review, and in 2006 the interest component on student loans was scrapped for students who remained in New Zealand.