The Government needs to "re-look" at how much it's supporting students in allowances and living cost payments due to the high cost of living, the vice-chancellor of Otago University says.
Tens of thousands of students are currently preparing for a new year of study, and many say they are struggling to pay for basic essentials such as rent, power and groceries.
Vice-chancellor Grant Robertson says his university is doing its best to support students, but “the biggest solution here lies with the Government".
The former Labour Finance Minister, who took the top job at Otago in 2024, said his university was giving more hardship grants to students than ever.
He wanted the Government to take more action.
“I would like to see students better supported,” he said.
“There are regular increases to student loan living costs and allowances, but I think the Government will need to re-look at those in the context of what has been a significant increase in the cost of living.
Govt: Support covers 'majority of costs'
However the Government has said its support system is “among the more generous” for tertiary education in the OECD.
In a statement, the Minister for Universities Shane Reti said support payments such as allowances and living costs were adjusted for inflation annually on April 1.
“Government support covers the majority of the costs of study for domestic tertiary students, funding around three-quarters of fees, rising to more than 80 per cent when the student loan subsidy is included,” he said.
“Tertiary study is an investment in students’ futures, as graduates typically have significantly higher earning potential than those without a qualification.”
Students describe financial struggles
While the debate continues, students are pressing on and finding ways to adapt to their financial reality.
At the University of Canterbury, 18-year-old psychology student Malaika Pasha said her flat was keeping the heating off most of the time.
“You turn it on for like half an hour at the most and then after [if] you're still feeling cold, just chuck on a few more layers like a jacket and more blankets,” she said.
They also had to keep a close eye on spending on food and rarely went out to eat.
“It's harder to eat a little bit healthier just because vegetables and fruits are more expensive than anything, so we just have a lot of carb-heavy meals at home,” she said.
It’s at the point that the University of Canterbury is accepting donations from the public, to help students in hardship. A page on their website encouraged the public to donate gifts of up to $500 to help students in hardship. The money goes towards scholarships.
The university’s deputy vice-chancellor academic, Catherine Moran, described it as “such a worthy way to donate”.
“The students absolutely are our future, education can change generations,” she said.
“You make a huge difference to a student's life with every donation and it doesn't have to be a large donation. Big or small, it all impacts.”
When support makes the difference
One of those to benefit from a scholarship was electrical engineering student Flynn Turfrey-Rowe.
“My grades went up from first year going into second year, and it just took all that stress away pretty much,” he said.
“I was able to focus a lot more on my studies, spend a lot more time going over lecture notes”
Similar stories were relayed by the University of Auckland Students’ Association.
President Nimish Milan Singh said most of his student allowance went to the cost of rent and extra money he made from other sources went to food.
“The cost of living here is really, really high. Many of [the students] are working more than 10 hours per week, some of them are looking for other jobs,” he said.
He hoped that the student allowance would be increased.
“Students cannot study if they cannot survive.”
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