1. STUDY LINK Financing 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 $211.96 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 $210.13 per week (if living away from home and aged under 24 years) All students receiving an Allowance and living away from home are eligible for an Accommodation Benefit of up to $40 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: www.studylink.govt.nzwww.studylink.govt.nz

3. Example Student Allowance Student Under 24 Years Living at Home: Student Under 24 years Living Away From Home: Combined Gross Parental Income Under $55,027.96$70,000Over $84,163.86 Weekly Student Allowance $140.08 Net$68.10 NetNo Allowance Combined Gross Parental Income Under $55,027.96$70,000Over $91,448.30 Weekly Student Allowance $210.13 Net$103.12No Allowance

4. What is a Student Loan?  The Student Loan is a LOAN – it must be paid back!  The Student Loan has 3 parts:  COURSE FEESTotal cost paid straight to the provider/tertiary institution  COURSE RELATED COSTSTo assist with course expenses, e.g. books, equipment; maximum of $1,000 per year  LIVING COSTSTo assist with accommodation costs; maximum of $176.86 per week  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 (5.5%).  A student can apply for a loan for a maximum of 7 years.

5. Student Loan Example – Bachelor of Information Technology 3 Years Fulltime Course Fees$6,522x 3 = $19,566 Living Costs ($176.86 x 38 weeks) $6,720 x 3 = $20,160 Course Related Costs$1,000 x 3 = $3,000 Establishment Fee$60 x 3 = $180 Total Student Loan for Bachelor of Information Tech $42,906

6. Student Loan Example – Diploma in Engineering 2 Years Fulltime Course Fees$6,240 x 2 = $12,480 Living Costs ($176.86 x 38 weeks) $6,720 x 2 years = $13,441 Course Related Costs$1,000 x 2 = $2,000 Establishment Fee$60 x 2 = $120 Total Student Loan for Diploma in Engineering $28,041

7. Applying for Loans and Allowances Student Loan and Allowance applications are made on-line via the Study Link website: www.studylink.govt.nz 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 5.9% is charged once you leave NZ for more than 6 months  You must start repaying your Loan once you earn more than $19,084 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 website 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 the local Nelson Study Link Officer (Outreach): Janet Burgess Ph: (03) 989 7047 Email: janet.burgess007@msd.govt.nzjanet.burgess007@msd.govt.nz www.studylink.govt.nz