Changes in Student Allowances in 2008

Allowances and loan recipients

Among student allowances recipients we can distinguish those who receive allowances only (SA) and those who also borrow from the Student Loan Scheme (SA+SL).  The proportion of student support recipients who received allowances only decreased from 23 percent in 2000 to around 20 percent from 2001 to 2005 and then down to 17 percent in 2006.  In 2008 the proportion increased to 19 percent.

Table 8:  Student allowances and loans combinations

Number	2004	2005	2006	2007	2008
Allowances only	11,900	11,400	10,300	11,400	12,200
SA + SL	48,900	45,400	49,100	51,100	53,500
Loan only	108,100	109,000	118,300	122,700	125,000
SA and/or SL	169,000	165,800	177,800	185,100	190,700

 

Of the 65,700 student allowances recipients in 2008, about 53,500 students received allowances and a loan.  This represents 30 percent of all loan borrowers in 2008.

The profile of student allowances recipients who receive allowances only differs from the profile of students who receive allowances and borrow through the student loan scheme.

Figure 12: Comparison of student allowances recipients and student loan borrowers

In 2008:

• Allowances only recipients and allowances recipients with a loan had a similar gender breakdown: about 54 percent were female and 46 percent were male.
• Half of the students who received an allowance only were under the age of 25 years, compared to 62 percent of those with allowances and loans.
• About 20 percent of students who received allowances only were not single compared to 13 percent of those with allowances and loans.
• About 11 percent of students with allowances only had children compared to 7 percent of students with allowances and loans.
  

 

Table 9: Profile of recipients of allowances only and  recipients of allowances and loans, 2008

		SA	SA+SL
By gender	Female	6,600	29,000
	Male	5,600	24,500
By age group	Under 25	6,200	33,400
	Aged 25 and over	6,000	20,100
By marital status	Single	9,800	46,800
	Non-single	2,400	6,700
By parental status	No children	11,000	49,800
	With children	1,200	3,700

 

Student loan borrowers who are studying full-time are entitled to borrow up to $150¹⁷ per week towards meeting their living costs, less any net student allowances entitlement they have.

 

Table 10: Student allowances and living-costs entitlement  combinations

	2004	2005	2006	2007	2008
Allowances only	40,300	38,400	39,500	40,400	42,800
SA and Living costs	20,500	18,500	19,900	22,100	22,900
Living costs only	57,000	55,200	61,000	65,100	65,900
SA and/or Living costs	117,800	112,100	120,400	127,600	131,600

In 2008, about 22,900 students (35 percent of total allowances recipients) received both allowances and a living-costs loan entitlement.  Only 50 percent of 2008 student loan borrowers received the living-costs component of the loan; this was due to part-time students and students whose allowances were above $150 per week being ineligible for the living-costs entitlement.  Of those borrowers, about 26 percent also received student allowances.

Figure 13: Comparison of student allowances recipients and student loan borrowers

In 2008, about 31 percent of the recipients of allowances only studied bachelors degrees and 41 percent studied at degree level and higher.  In comparison, students who received allowances and loans, 57 percent studied bachelors degrees and 66 percent studied at degree level and higher.  Thus receiving both student allowances and student loans is more prevalent amongst those studying for higher qualifications.

 

Table  11: Recipients of allowances only and  recipients of allowances and loans by level of study, 2008

	SA	SA+SL	SL	Total SA	Total SL
Certificate,    level 1-3	2,900	6,600	26,500	9,500	33,100
Certificate,    level 4	1,700	4,600	12,400	6,300	17,000
Diploma,    level 5-6	1,700	7,000	16,900	8,700	23,900
Bachelors    degree	3,900	30,600	58,000	34,500	88,600
Honours/Post    graduate certificate	500	2,900	6,800	3,400	9,700
Masters	400	1,200	3,200	1,600	4,400
Doctorates	200	400	900	600	1,300
Non-tertiary    (Schools)	900	200	300	1,100	500
All	12,200	53,500	125,000	65,700	178,500

Changes to student allowances expected in 2009

From 1 January 2009, two Budget 2008 initiatives that affect the uptake in student allowances were put in place:

• a 1-year reduction in the age at which parental income testing cuts out (from 25years to 24 years) and
• a 10 percent increase in the lower parental income threshold to $50,318 per annum.  The cut-out points are to rise to $75,854 for students living at home and $82,238 for students living away from home.

Footnote

17. From January 2009 the living costs loan entitlement is $155 per week.