Glossary of terms and definitions

General Definitions

Approved study course/programme

This is a course or programme that has been approved by the Tertiary Education Commission for the Student Allowance and/or Student Loan. You can find out if your course is approved by asking your education provider.

Best interest

For Limited full-time status, this could include a student who has completed a Foundation course or Certificate of University Preparation and is in their first year of a degree, who has been out of study for a number of years and returning to study or who is a recipient of the Prime Minister's Athlete Scholarship.

Education provider

This is the organisation you will be studying with. It has to be approved by the Tertiary Education Commission to run their courses and could be a secondary school, private training establishment, university, polytechnic, college of education or wananga.

Full-time

Tertiary courses have an Equivalent Full Time Student (EFTS) value assigned to them.

Many education providers divide their courses into papers and assign a certain EFTS value which adds up to a full-time course.

The EFTS value determines if the course is full-time or not. Your course must reach a certain EFTS value to be classed as full-time.

Below are some examples of full-time courses based on the EFTS value and length of the course.

Length of course	EFTS needed for a course to be treated as full-time
12 weeks	0.3
20 weeks	0.5
32 - 52 weeks	0.8

If you're unsure if your course is full-time, check with your education provider.

StudyLink will request a Verification of Study (VOS) from your education provider

Summer school has its own full-time status criteria.

Student Allowance Definitions

Children/Other dependent students

For the parents of a student applying for a Student Allowance, another dependent student is someone:

• who is attending a full-time course at a tertiary provider or a secondary school
• who is aged 16 years or over but under 25 years at 1 January of the year the Student Allowance is applied for
• who has not been awarded an Independent Circumstances Grant
• for whom you do not get a Work and Income Orphans or Unsupported Childs Benefit
• who receives financial support from that parent.

Children/Supported children

This is anyone under 25 who lives with you at least 50% of the time and who you support. This can include stepchildren, children at boarding school, adopted or whangai children, grandchildren or mokopuna. It doesn't include any children who are on a Student Allowance or Work and Income benefit, or who earn more than $80 a week before tax, or anyone who you are being paid a Work and Income Orphans or Unsupported Childs Benefit for.

Please note: this definition is different from that of the Unemployment Benefit Student Hardship.

EFTS

The Tertiary Education Commission decides if a course is either full-time or part-time by applying what's called an EFTS (equivalent full-time student) value to each course. The EFTS value is determined by the content of your course. If you're unsure of the EFTS value of your course, check with your education provider.

Full-time

Your course must reach a certain EFTS value to be classed as full-time. Here are some examples of full-time courses based on the EFTS value and length of the course.

Length of course	EFTS needed for a course to be treated as full-time
12 weeks	0.3
20 weeks	0.5
32 - 52 weeks	0.8

If you're unsure if your course is full-time, check with your education provider.

Income

For the Student Allowance, income is money you and your partner get from any source, taxable or non-taxable - including wages, salary, interest from savings or investments, dividends from shares, income from a family trust, farm or business, maintenance payments, child support, paid parental leave, income from boarders or rent, private superannuation, weekly accident insurance payments, scholarships or any other source.

A Student Allowance or Student Loan isn't counted as income.

NQF

NQF (National Qualifications Framework) is the qualifications framework which includes unit and achievement standards, National Certificates, National Diplomas and NCEA.

Parent

This is a natural, adoptive or whangai parent, a guardian, caregiver, step-parent, partner of your parent, or any other person acting as a parent who is responsible for your well-being and financial support. A person who receives a Work and Income Orphans or Unsupported Childs Benefit for you is not recognised as a parent for Student Allowance purposes.

Parental home

This is a property where the parents live or one that they own or maintain. It doesn't include a property where the student is paying market rent or responsible for expenses for the home.

Parents' income

This is any taxable income your parents received in the last financial year, including any overseas taxable income that they didn't pay New Zealand tax on.

Partner

This is someone you are in a recognised relationship with. A recognised relationship is when you are both 25 or over and in a relationship such as marriage, a civil union or a defacto relationship with someone of the same or opposite sex. If either of you is under 25, one or both of you must have a child in your care to be in a recognised relationship. 

Passing over half your course

If you received a Student Allowance last time you studied a full-time tertiary course, you must have passed more than half the work of a full-time tertiary course to continue to get a Student Allowance.

Permanent resident

For the Student Allowance, a permanent resident is someone who has legally lived in New Zealand for at least 2 years, who has held 'permanent residency status' for at least 2 years and who normally lives here.

Recognised relationship

A recognised relationship is when you are both 25 or over and in a relationship such as marriage, a civil union or a defacto relationship with someone of the same or opposite sex. If either of you is under 25, one or both of you must have a child in your care to be in a recognised relationship.

Separate households

This means that your parents are living at different addresses for the majority of the week. Separate households do not include addresses used for holiday periods.

Single person

This is anyone who is not in a recognised relationship. It includes anyone who is separated, divorced or widowed.

Student Loan Definitions

Additional repayments

These are the extra repayments you choose to make in addition to the repayments you have to make. By making additional repayments you can pay your loan off faster and pay less interest (if you are not eligible for an interest free Student Loan).

Annual repayment obligation

This is the amount of money Inland Revenue assesses you have to pay back for the financial year. It is calculated by multiplying the amount you earn over the repayment threshold by 10%.

Bankrupt

A person who's been officially declared as bankrupt and hasn't yet been discharged under the Insolvency Act 1967.

Base interest rate

This is the difference between the full interest rate and the interest adjustment rate.

Benefit

This is any income support that pays for living costs and is paid to both you and your partner - such as the Unemployment Benefit, Invalids Benefit, or New Zealand Superannuation (a war pension isn't counted as a benefit).

Cost of credit

This is what it costs to use the loan scheme. It is a separate cost on top of any funds you use for fees, course-related costs and living costs. It is made up of the interest charged (both base and adjustment interest) and the $50 administration fee.

EFTS

The Tertiary Education Commission decides if a course is either full-time or part-time by applying what's called an EFTS (equivalent full-time student) value to each course. The EFTS value is determined by the content of your course. If you're unsure of the EFTS value of your course, check with your education provider.

End-of-year repayment calculation

This is a notice from Inland Revenue that shows how your annual repayment obligation is calculated.

Financial year

This is from 1 April to 31 March.

Interest adjustment rate

This interest rate is based on the Consumer Price Index (or the cost of living) from the last year. It can move up or down depending on inflation.

Loan Account

This is an account that keeps track of your transactions and is set up once your loan is approved. You need to take out a new loan (and open a new loan account) for every year of your studies.

Each loan account closes on 31 December following your course end date.

After your loan account has closed, your loan balance transfers to Inland Revenue on 28 February. Inland Revenue is responsible for collecting repayments from you.

Parent

This is a natural, adoptive or whangai parent, a guardian, caregiver, step-parent, partner of your parent, or any other person acting as a parent who is responsible for your well-being and financial support. A person who receives a Work and Income Orphans or Unsupported Childs Benefit for you is not recognised as a parent for Student Allowance purposes.

Personal tax summary

This is a notice from Inland Revenue showing your income details for the financial year and any refund or tax to pay.

Permanent resident

This is someone who holds 'permanent residency status' and normally lives in New Zealand.

Repayment threshold

This is the amount you can earn in a year before you have to start paying back your loan. Once you start earning more than the repayment threshold amount you'll have to pay 10 cents (10%) for every dollar over the amount.

Vocational course

A vocational course is one that has an employment related component. The Tertiary Education Commission (TEC) is responsible for determining whether a course meets the vocational criteria.

Year

For the Student Loan a year is 52 weeks from when you start your course.

Unemployment Benefit Student Hardship Definitions

Assets/Cash assets

Assets include anything you or your partner own that can readily convert into cash such as savings, shares, stocks, loans to others or property you don't live in.

Children/Dependent children

By 'children' we mean anyone under 18 who lives with you and whom you financially support - this includes stepchildren, children at boarding school, adopted or whāngai children, grandchildren or mokopuna.  It doesn't include children who are financially supporting themselves or working full-time, or anyone you are being paid a Work and Income Orphans Benefit or Unsupported Childs Benefit, or a Child Youth and Family payment for. 

Please note: this definition is different from that of the Student Allowance

If you are sharing custody of the child, only one of you can include the child in your application for the Unemployment Benefit Student Hardship.

Income

For the Unemployment Benefit Student Hardship, income is any money you or your partner get from any source taxable or non-taxable. This could be wages or salary, child support, paid parental leave, interest from savings or investments, dividends from shares, income from a family trust, farm or business, maintenance payments, income from boarders or rent, superannuation, weekly accident insurance payments, scholarships or any other source, including any indirect monetary benefits you get such as free board or shares in a business.

Recognised Relationship

A recognised relationship is when one or both of you are 16 or over and in a relationship such as marriage, a civil union or de facto relationship with someone of the same or opposite sex. 

Please note: this is a different definition from the Student Allowance

Stand-down

This is the waiting time from when you qualify for the Unemployment Benefit Student Hardship (usually after your last exam) until the time you are entitled to your benefit (your payments start even later because you're paid a week in arrears). You won't get paid during a stand-down. If you have a partner or a child and you're in hardship because your Student Allowance has stopped and you're waiting for your benefit to start, you may be able to get the Student Allowance Transfer Grant.