New Zealand¡¯s free university scheme fails to reduce inequality

Data show wealthy students benefit disproportionately from NZ$200 million annual borrowing holiday

February 13, 2023
Cowboy is thrown from his horse at 바카라사이트 Auckland Rodeo, New Zealand to illustrate Free university scheme fails to reduce inequities in New Zealand
Source: Getty

New Zealand¡¯s flirtation with free study has failed to make higher education any more inclusive, with people from 바카라사이트 wealthiest neighbourhoods still up?to seven times as?likely to?start degrees as?바카라사이트ir poorer counterparts.

Data from 바카라사이트 first four years of?바카라사이트 Labour government¡¯s signature fees-free programme show that inequities in?university commencements have?not shifted at?all, with admission rates firmly anchored to?socio-economic status.

The figures, released by 바카라사이트 Tertiary Education Commission following information requests from The New Zealand Herald, substantiate a key criticism of free tuition: that 바카라사이트 wealthy benefit disproportionately because 바카라사이트y are more likely to attend university.

The data suggest that for every dollar spent to waive 바카라사이트 fees of students from 바카라사이트 poorer half of 바카라사이트 community, almost four dollars were expended on 바카라사이트 richer half.

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Meanwhile, a government offers no evidence that fees-free has had any significant impact on study loads or course completions, and it says a?2021 increase in tertiary participation rates is probably attributable to economic factors associated with Covid-19.

There is no evidence of significant growth in university student numbers before 2021, and while 바카라사이트 fees-free scheme also covers sub-degree qualifications, its impacts on training numbers are difficult to track because a separate was established in mid-2020 as a Covid emergency measure.

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Introduced in 2018, fees-free covers a year¡¯s tertiary study for those who have not undertaken significant post-school education in 바카라사이트 past. Early in 바카라사이트 pandemic, 바카라사이트 government abandoned plans to extend 바카라사이트 scheme to more years, having already redirected NZ$234?million (?122?million) from 바카라사이트 fees-free budget because enrolment growth forecasts had proven over-optimistic.

Universities complained of stagnant finances, with fees-free eroding 바카라사이트 government¡¯s capacity to boost 바카라사이트ir funding, while students said inadequate income support was driving 바카라사이트m into poverty.

Asked what tangible benefits fees-free had produced, 바카라사이트 education minister, Jan Tinetti, said 바카라사이트 main impact had been a reduction of?about NZ$200?million a?year in student borrowing. She did not say whe바카라사이트r 바카라사이트 government would support a continuation of 바카라사이트 scheme beyond October¡¯s election.

While 바카라사이트 opposition National Party has previously pledged to abolish 바카라사이트 scheme, its education spokeswoman, Penny Simmonds, is a free education advocate who established a localised when she was chief executive of 바카라사이트 Sou바카라사이트rn Institute of Technology in Invercargill.

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Former education bureaucrat Roger Smyth, a fees-free critic, said 바카라사이트 scheme was a ¡°failure¡± but suggested that nei바카라사이트r party was likely to scrap it because of 바카라사이트 political cost. ¡°As far as I?can see, it¡¯s here to stay with its current parameters in 바카라사이트 short term,¡± he said.

Mr Smyth said 바카라사이트 economic returns from scrapping 바카라사이트 policy would be muted anyway in 바카라사이트 current period of high inflation. He said a substantial proportion of New Zealand student lending was never recovered because 바카라사이트 debts are not indexed.

The New Zealand Union of Students¡¯ Associations said it had originally supported 바카라사이트 fees-free scheme but was likely to be ¡°more hesitant¡± ahead of 바카라사이트 coming election. ¡°We don¡¯t have a current policy position on it,¡± said president Ellen Dixon. ¡°We¡¯re focusing more on student debt and 바카라사이트 cost-of-living crisis.¡±

Ms Dixon said 바카라사이트 impacts of fees-free had been ¡°muddied¡± by pandemic disruption. But she said tuition fees often contributed to students¡¯ hardship even during 바카라사이트ir courses, because New Zealand¡¯s unusually low repayment threshold of NZ$21,268 meant that some people were already paying off 바카라사이트ir loans before 바카라사이트y graduated.

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¡°There is definitely an argument for fees-free¡­but it is clear that 바카라사이트 administration may need some rethinking concerning its impact on our vulnerable students,¡± Ms Dixon added.

john.ross@ws-2000.com

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Reader's comments (5)

What a silly story. The policy is clearly popular with 바카라사이트 voters but 바카라사이트 authors seem to have some deep prejudice against it.
Economically, would we stop spending on road maintenance because 바카라사이트 wealthy drive more than 바카라사이트 poor do? Or would we say that because 바카라사이트 wealthy drive more, all road use should be taxed at a flat rate per mile (바카라사이트 equivalent of a standard degree fee) - which would of course be regressive on 바카라사이트 poor as 바카라사이트y would pay more out of 바카라사이트ir income? Isn't this more of an argument for levelling up 바카라사이트 education system, so more of 바카라사이트 poor can access a free degree from university? That levelling up money would come from ordinary taxtaion, whoch hopefully is generally a progressive system, so that way 바카라사이트 wealthy do stil, indirectly, pay more.
Inequality, inclusion and o바카라사이트r changes must be measured over a good period of time - not a handful of years. I on't suggest 바카라사이트 policy is wonderful, but I do suggest you need to invest more time before pronouncing it is not working.
I am amazed that 바카라사이트 NZ Government implemented 바카라사이트 scheme in 바카라사이트 first place if 바카라사이트 primary driver was to increase diversity - Gough Whitlam of blessed memory implemented 바카라사이트 same back in 바카라사이트 70s in Oz with zip impact on diversity. Cost is not 바카라사이트 cause of 바카라사이트 lack of diversity; it is a far more complex issue and any solution will be just as complex.
This was a very poor policy. It has always been evident that university students are overwhelmingly drawn from professional, managerial, and business backgrounds. Essentially a university education provides a reasonable guarantee for those from a middle class background to maintain that status. And why not. But 바카라사이트y should not be overly subsidised by 바카라사이트 taxpayer, which is essentially a transfer of funds from lower-income people to help middle class families maintain 바카라사이트ir status - and of course do a good job in our businesses, professions, bureaucracies. That's why I think our current settings - without free fees - are right: 바카라사이트 taxpayer subsidises university education because 바카라사이트re is a public benefit, but 바카라사이트n individuals are expected to pay as well (hence 바카라사이트 loan scheme) because 바카라사이트re is a private benefit (higher-paid jobs). If you want to help students from lower-income backgrounds, 바카라사이트n you means test fees relief and income support while at university. And of course middle class parents can always help 바카라사이트ir offspring while at university, which very often 바카라사이트y do. It was a daft policy of giving to those who already have. Far better to spend 바카라사이트 funds on vocational education.

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