Sorting the money for study

Here are some helpful steps to funding your study. 

• Check if you can get a Student Allowance, and how much you could receive.
• At the same time, check if you are eligible for other kinds of help - use our What you can get tool.
• Look around for a scholarship.
• Check where else you could get money from to help pay for your study or to live. Will your family help?
• Add in any income from work, during holidays and term time.
• Get a Student Loan if you need one, but only borrow as much as you need.
• Apply online to StudyLink as soon as you can. You can apply early even if you don't know for certain where or what you're going to study (but when you do, let us know).

What student finance options can StudyLink help with?

This video is 1 minute 54 seconds long.

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Get Sussed for study

If you're continuing study after you leave school, you're going to have a lot of choices to make. Take our online reality check to get you on your way. Will it be broadband and baked beans? Dial-up and dining out? Hear from students about their experiences and get yourself Sussed.

Sussed reality check is a tool to help you plan and understand the costs you will have while studying and the different ways you might be able to pay for it.

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The Student Allowance

This is money from the government for full-time students, to help with living expenses while you study.

You don’t have to pay this money back.

If you earn any money while you get the Student Allowance, you’ll need to tell StudyLink what you are earning so we can make sure you get the right amount of Student Allowance. If you don’t, you could be overpaid and have a debt to pay back.

You can use MyStudyLink, a secure online tool, to tell StudyLink what you’re earning, and update them when this changes.

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Scholarships

A scholarship is money to help with study, and can pay towards your course fees or help you with living expenses. How much it is, and what it’s for, is decided by the organisation giving it.

Hundreds of different organisations offer scholarships for many different kinds of students and many different reasons. Scholarships can range from a few hundred to thousands of dollars.

You don’t necessarily have to have top marks at school to get a scholarship.

Graduate Ryan says, "My marks weren't that great at school. I went straight from school to study Sports Science at university, but didn't think I'd qualify for a scholarship. I found out later that if I'd applied for one of the many Pacific Island Scholarships available at the time, I would probably have got it, and it could have been worth up to $8,000 a year. "If I only pay the minimum my Student Loan won't be paid off until I'm almost 40. Getting that scholarship would have made a huge difference."

You might have to do a bit of research, and then fill out a few forms, but if you’re successful, the time spent will be well worth it.

How could a scholarship could help you?

This video is 2 minutes 13 seconds long. 

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Working and study

To have enough money while you study, you may need to work. 

You'll need to find a balance between work, study, and the rest of your life.  

You could decide to work part-time while you study or work in the holidays. 

If you've already got a job:

• keep it!
• if you're working for a national business and moving to a new town, see if you can get a job with the local branch
• ask about working full-time, or at least doing more hours, in the holidays.

How can working work for you?

This video is 2 minutes 42 seconds long.

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So how do you find a job?

Before you start job hunting, get together a CV (Curriculum Vitae). It’s a document that tells who you are, what you’ve done, and what your skills are. This is what employers use to decide whether to interview you. Career Services can help you create a CV – at one of their offices or online at their website.

Student Job Search works like an employment agency, matching employers with students looking for work. There’s a range of jobs on offer, from hospitality (bar and restaurant) and seasonal work (Christmas promotions to fruit picking), to office jobs and research. To get a job through Student Job Search, you need to register with them online.

Use your networks to find a job. Talk to your friends and family and ask them to listen out for opportunities.

Try the direct approach. If there’s a business you want to work for, knock on the door and say you’re keen. You should have a CV ready to leave with them.

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Student Loans

You can borrow money to pay for: 

• Your course fees - this is paid straight to your education provider
• Course-related costs - you can borrow up to $1,000 to help with things like text books and stationery. It's paid into your bank account. It's worth checking out other ways to keep costs down, such as second hand textbook sales, as they can help you borrow less.

Living costs - you can choose to borrow up to $169.51 a week, depending on how much Student Allowance you get. If you borrow the full $169.51 a week, it'll add about $6,500 to your borrowing for the year.

Student Loans

This video is 1 minutes 37 seconds long.

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Paying back a Student Loan

You have to start paying back your Student Loan as soon as your income is over a certain level – $367 a week before tax – even if you’re still studying. The repayments come straight out of your salary or wages. Repayments are set at a minimum amount, but you can pay more in order to pay off your loan faster.

Student Loans can take many years to pay back – you could be paying for around 10, 15 or 20 years, depending on how much you borrow, and how much you earn.

Graduate Ryan says, “Borrow smart. Borrow only what you need. Look for other ways of funding your study. Apply for a Student Allowance and look for scholarships. If you have a job, keep it; if you don’t, go and find one. “My Student Loan is now $30,000. It was $47,000 when I graduated. I am paying $130 a fortnight and will be 37 years old when it’s paid off. “Keep your borrowing to a minimum and you’ll make a big difference to your future.”

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A Student Loan scenario

Dave decided to study for a Bachelor Degree in Information Technology. It will take three years and he will graduate when he is 22 years old. His total Student Loan will be about $25,000.

Total loan of...	$25,000
Age at graduation	22 years old
He has a salary of	$35,000
Makes minimum weekly payments of	$30.61*
His Student Loan will be paid off in	15.7 years
Dave's age when it's paid off in full	38 years old

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Part-time work reduced borrowing

When he saw how long it would take to repay his loan, Dave decided to work while he studied to reduce his borrowing. This meant he didn't have to borrow any living costs. He still needed a Student Loan, but he was much more comfortable with how much he'd borrowed when he saw what a difference it made.

Total loan of...	$10,000
Age at graduation	22 years old
He has a salary of	$35,000
Makes minimum weekly payments of	$30.68*
His Student Loan will be paid off in	6.2 years
Dave's age when it's paid off in full	28 years old

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Pay back a little more, and repay faster

It's a good idea to repay a Student Loan as fast as you can. Any Student Loan you have may impact on your options later in life, such as getting finance for a car, or the amount you can borrow to buy a house. 

The experience Dave gained from working helped him get a job after he'd finished studying. He wanted to know how to pay back his Student Loan as fast as he could. By using the repayment calculator at www.ird.govt.nz/studentloans/ he saw that it wouldn't take much extra effort to make a real difference. 

Total loan of...	$10,000
Age at graduation	22 years old
He has a salary of	$35,000
Makes weekly payments of	$50.68* ($20 more than the minimum)
His Student Loan will be paid off in	3.7 years
Dave's age when it's paid off in full	26 years old

* These figures are approximate and reviewed each year. 

For more information please visit the Inland Revenue website or call IRD on 0800 377 778.

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What to do next

So what happens now?

You need to consider, discuss and research.  Remember there are a lot of ways to reach your goals.

To do list:

• Talk to your parents
• Research courses and education providers - including job opportunities, the qualifications you'll need and where to get them
• Talk to Career Services on 0800 222 733 or check out their website www.careers.govt.nz
• Visit your school Careers Advisor
• Research scholarships and other funding options

To sum it up:

• Do the research
• Do your budget plan
• Understand what it will cost
• Work out how to minimise your borrowing
• Apply well before your course starts