Douglas Olsen
Student Allowance is a weekly payment provided by StudyLink to help students with living expenses while studying. It is similar to a student loan for living costs, but it does not need to be paid back. The allowance amount varies from $200 to $421.77 per week, depending on the student's income and their partner's income, if applicable. Students can also apply for a student loan to cover living costs, which must be paid back.
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What You'll Learn
Student allowance vs student loan
A student loan and a student allowance are two different ways to fund your studies. While a student loan has to be paid back, a student allowance is a weekly payment that helps with living expenses and does not have to be repaid.
Student Allowance
A student allowance is a weekly payment that helps with living expenses while you study. The allowance is usually approved for a certain amount, and if you are also receiving weekly living cost payments, the allowance will reduce the living costs by the amount of the allowance. For example, if you are getting weekly living costs payments of $323.43 and your student allowance is approved for $200 a week, your living costs will be reduced to $123.43 a week.
To be eligible for a student allowance, you must meet certain criteria. You must be enrolled in an undergraduate tertiary course or Bachelor's degree with honours, or at secondary school, or be studying overseas through an approved education provider in New Zealand. You must be a New Zealand citizen or meet residency requirements. You must be 18 years old or over, although 16 and 17-year-olds can get it in limited circumstances. If you are under 18, one of your parents or guardians will need to sign the contract. Whether you can receive a student allowance also depends on your parents' income and your relationship with them. If you are in a recognised relationship, your partner's income will also be considered.
You can apply for a student allowance at any time before or during your course, but all the documents must be received before the end of your course. If you apply after your course starts, you can only get paid from the date of your application. If your application is approved before your course starts, you will get your first weekly payment in the second week of your course. You won't get any money in the first week because payment is made in arrears. When you finish your course, you will get your last payment a week later. If you have had a student allowance before, there are extra criteria you must meet.
Student Loan
A student loan, on the other hand, has to be paid back. It is recommended that you only borrow what you need. If you get a student loan, you will need to pass at least half of the papers of your previous study to get it again. If you stay in New Zealand, your student loan will be interest-free. However, if you go overseas for more than 6 months, interest will be charged on your loan, and your repayment will not be based on your income but your student loan balance. If you have moved overseas and have not paid back your student loan for a long time, you could be arrested when you try to enter or leave New Zealand for knowingly avoiding your repayment obligations.
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Student allowance and income
A student allowance is a weekly payment that can help with living expenses while studying. It is similar to a student loan for living costs, but it does not need to be paid back. The student allowance is approved for $200 a week, and the living costs are $123.43 a week.
If you are earning an income while receiving a student allowance, you must report it immediately as it could affect your allowance. The first $276.11 earned per week (before tax) is not counted as income, but any earnings above this amount will be counted, and your allowance will be reduced by the same amount. For example, if you earn $350 in a week before tax, only $73.89 will be counted as income, and your student allowance will be reduced by $73.89. If you do not report your income, you may be overpaid and will have to pay back the excess amount.
If you are in a recognised relationship, your student allowance will be based on your income and your partner's income. If your partner works, their income may affect your student allowance.
If your student allowance application is approved before your course starts, you will receive your first weekly payment in the second week of your course. This is because payments are made in arrears, meaning you study for one week and get paid for that week in the following week. When you finish your course, you will receive your last payment a week later.
There are other ways to fund your studies besides a student allowance or loan. For example, if you are starting a trade, you can do an apprenticeship, which may not require course fees. If you are starting study for the first time in 2025, a fund called Fees Free may cover some of your course fees for your final year of study. Savings can also help pay for some or all of your study costs, reducing the amount you need to borrow.
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Student allowance and accommodation benefit
A Student Allowance is a weekly payment that can help with your living expenses while you're studying. You don't have to pay this money back. However, to get a Student Allowance, you must meet certain criteria. These include residency requirements and the course you are enrolled in. In some cases, you can get a Student Allowance if you're 16-17 years old or studying part-time. If you have previously received a Student Allowance, there are additional criteria you must meet. If your course lasts longer than a year, you need to reapply for the Student Allowance each year.
The amount of money you receive weekly varies. If you or your partner have any income, you must report it as it could affect your Student Allowance. You can earn up to $276.11 a week (before tax) before your Student Allowance is affected. After that, your Student Allowance is reduced by the same amount as your earnings. For example, if you earn $350 a week (before tax), $276.11 will not be counted as income, but the remaining $73.89 will be, and your Student Allowance will be reduced by $73.89.
If your Student Allowance application is approved before your course starts, you will receive your first weekly payment in the second week of your course. You won't get paid during the first week because payments are made in arrears. So, you study for one week and get paid for that week in the following week. When you finish your course, you will receive your last payment a week later.
If you receive a Student Allowance, you may also be eligible for an Accommodation Benefit or Accommodation Supplement to help with accommodation costs. The Accommodation Benefit is paid weekly along with your Student Allowance and does not require a separate application. To be eligible, you must not live with your parents or in a place owned or paid for by them. However, there are exceptions to this rule, such as if you live in a hostel or boarding house, or if you or your partner have a child.
The Accommodation Supplement is a weekly payment that helps with rent, board, or the cost of owning a home. You can apply for this supplement if you have accommodation costs, are 18 or older, are a New Zealand citizen or permanent resident, and meet certain income requirements. Unlike the Accommodation Benefit, the Accommodation Supplement requires a separate application, and you cannot receive both at the same time.
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Student allowance and relationship status
A student allowance is a weekly payment that can help with living expenses while studying. It is not a loan and does not have to be paid back. However, if you don't inform the necessary authorities about your income, you may be overpaid and will have to pay back the excess amount.
When it comes to relationship status and student allowance, it is important to know that being in a recognised relationship can impact your allowance. A recognised relationship is defined as a marriage, civil union, or de facto relationship. If you are in a recognised relationship, your partner's income will be considered when determining your student allowance. This means that your allowance may be reduced depending on your partner's income.
It is crucial to disclose any changes in your relationship status as soon as possible. This includes both the formation of a new recognised relationship and the dissolution of an existing one. Failing to do so may result in an overpayment or an incorrect allowance amount.
The amount of student allowance you receive is based on your income and your partner's income, if applicable. There are online calculators available to help you estimate how much allowance you may be entitled to based on your specific circumstances.
It is worth noting that student allowance is different from a student loan or hardship benefit. While one typically applies for both the allowance and the loan simultaneously, the allowance is not a loan and does not need to be repaid. Hardship benefits, on the other hand, are treated separately and may have different criteria, including the assumption that your parents would support you if they earned enough.
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Student allowance and age
A student allowance is a weekly payment intended to help with living expenses while studying. It is similar to a student loan for living costs but does not need to be paid back. The amount received varies depending on the recipient's situation, and their income and tax code.
To be eligible for a student allowance, certain criteria must be met. These include age, residency, and course requirements. Typically, applicants must be 18 years old or over, but 16 and 17-year-olds can receive the allowance in limited circumstances. There is no upper age limit for course fee borrowing, but applicants must be under 55 when their course starts to receive a student allowance.
In addition to age requirements, applicants must meet specific residency criteria. For most, this means being a resident in the country where the allowance is offered. Applicants must also be enrolled in an approved course, such as an undergraduate tertiary course, Bachelor's degree, or secondary school.
It is important to note that student allowance payments may be affected by any income earned during the study period. Applicants must declare their income to ensure they do not receive overpayments, which would create a debt to be paid back. Applicants can apply for a student allowance at any time before or during their course, but they must reapply each year if their course lasts longer than one year.
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Frequently asked questions
No, a student allowance is a weekly payment to help with living expenses while you study and you don't have to pay it back.
The student allowance is $200 a week. You can get up to $123.43 for living costs.
To get a student allowance, you must be enrolled in an undergraduate tertiary course or Bachelor's degree with honours, or at secondary school, or be studying overseas through an approved education provider in New Zealand. You must also be a New Zealand citizen or meet residency requirements.
