Fees Free tertiary education
Statistics relating to tertiary education funded through the Fees Free policy, including demographic data, student loan borrowing, course completions and study load.
Last Updated: August 2023
2018 to 2022 Data
This page presents statistics relating to the first five years of tertiary education funded through the Fees Free policy, including demographic data, student loan borrowing, course and qualification completion rates and study load. Fees-free study has been offered since 1 January 2018 to learners with little or no prior tertiary study, at Student Achievement Component (SAC) Level 3 and above. The Fees Free policy will continue to be monitored against the framework and further information will be published on Education Counts as data becomes available.
Where relevant, this page notes the impact of the Targeted Training and Apprenticeship Fund (TTAF) policy on participation in fees-free study. TTAF was introduced on 1 July 2020, supporting non-degree study at Levels 3 to 7, regardless of any prior study or training. Learners who started in fees-free and then moved to TTAF were counted in both categories in 2020. Unless otherwise stated, learners described as “fees-free” on this page are those whose education was funded through the Fees Free policy.
Statistics for previous years’ fees-free study have been updated. Changes to the data occur because of corrections and adjustments to students’ fees-free entitlements and payments. This report uses data from the Tertiary Education Commission dated 27 April 2023.
Page Contents:
Key findings
- In 2022, there were approximately 42,760 fees-free students or trainees, including 9,050 who started fees-free study between 2018 and 2021 and carried on their study into 2022. The number of new fees-free students and trainees decreased from 2021 to 2022 by 13 percent (4,925 learners) in provider-based study and by 55 percent (30 learners) in industry training.
- The falls in fees-free participation are related to the introduction of the Targeted Training and Apprenticeship Fund (TTAF) policy that funded all apprentices and a range of training programmes at sub-degree level. The impact of this policy has mostly affected industry training programmes, with only 45 industry trainees funded through the Fees Free policy in 2022.
- New enrolments in fees-free study at government-funded providers fell across all qualification levels. They declined by 18 percent for Levels 3 to 7 non-degree study, declined by 11 percent for bachelors-level and declined by six percent for post-graduate and higher study. New fees-free enrolments decreased across most demographic categories, with the decreases being smaller for male students than female, and smaller than average for students aged under 20 years, and for Asian students.
- The biggest demographic difference between fees-free and non-fees-free students in 2022 was by age-group. In provider-based settings, 65 percent of fees-free students were aged 18 to 19 years of age compared to 5 percent of non-fees-free students in formal study at Level 3 and higher. Fees-free students were also a little more likely to be European or Pacific Peoples than non-fees-free students.
- Course completion rates and study loads for first-time 18 to 19-year-old students tend to be similar to the levels seen prior to the introduction of the Fees Free policy.
Who participated in Fees Free study in 2022?
In 2022, there were approximately 42,760 unique fees-free students and trainees. This included 45 trainees in industry training benefiting from fees-free study. Approximately 33,115 equivalent full-time students (EFTS[1]) were fees-free in 2022, accounting for around 13 percent of total EFTS in formal study at Level 3 and above.
Table 1 shows key breakdowns for 2022 fees-free and non-fees-free learners in provider-based tertiary education. More data is contained in the spreadsheet file in the Downloads section.
New fees-free learners
The total number of new fees-free learners in 2022 was 33,710, compared with 47,890 in 2018, 49,930 in 2019, 43,610 in 2020 and 38,665 in 2021. In 2022 this was made up of 33,685 in provider-based study and 25 in industry training.
The number of new fees-free students decreased by 13 percent overall between 2021 and 2022 (4,955). For industry training, new starters were again very small in number because the TTAF policy was still in place, which started in July 2020. This policy funded all apprentices and a range of training programmes at sub-degree level, regardless of prior study. Trainees who started in fees-free and then moved to TTAF were counted in both categories in 2020. In 2022, almost all apprenticeship or trainee programmes eligible for Fees Free were funded from TTAF.
The TTAF policy also continued to influence provider-based study, with new fees-free enrolments in Levels 3 to 7 non-degree study falling 18 percent in 2022, compared to the overall decrease in new fees-free enrolments of 13 percent. In contrast, first-time fees-free enrolments in bachelors-level and post-graduate and higher study had smaller decreases of 11 percent for bachelors-level study and six percent for post-graduate and higher study. Bachelors-level students made up 62 percent of new fees-free enrolments in 2022 compared with 61 percent in 2021.
While new fees-free learner numbers in provider-based study were down in 2022, this occurred primarily in older age groups, and particularly for those aged 20 to 24 years, which saw a 41 percent drop. New fees-free learner numbers for female students in this age-group declined more than for males, down 45 percent compared to 34 percent. This age-group saw the largest decrease in new fees-free learners across all ethnic groups, except for Asian students, where there was a larger decrease for 25-39-year-olds.
Provider-based Fees Free study
Table 1 summarises the key characteristics of provider-based students by fees-free status. Of the 42,715 fees-free students enrolled in provider-based formal[2] study, 26,875 (63 percent) were enrolled at universities, 10,400 (24 percent) at Te Pūkenga, and 5,540 at private training establishments (PTEs, 13 percent). Just one percent of fees-free students were enrolled at wānanga. By comparison, the distribution of non-fees-free students by sub-sector was universities 46 percent, Te Pūkenga 35 percent, PTEs 14 percent and wānanga 9 percent. Lower fees-free enrolments at wānanga may be due to learners being older on average and more likely to have completed prior tertiary study that makes them ineligible for fees-free study. Also, many sub-degree programmes at wānanga did not attract fees prior to the introduction of the Fees Free policy.
More than half of provider-based fees-free students were female (60 percent), a slightly lower proportion than for non-fees-free with 62 percent female. Most fees-free students were aged 18 to 19 years (27,880 learners, 65 percent), 13,215 (31 percent) were aged 20 years and over and only 1,500 (4 percent) were aged under 18 years. By comparison, the distribution of non-fees-free students by age group was 93 percent 20 years and over, 5 percent aged 18 to 19 years and 2 percent aged under 18 years.
Most provider-based fees-free students were European (29,635 students, 69 percent), 7,160 (17 percent) were Māori, 4,930 (12 percent) were Pacific Peoples and 7,025 (16 percent) were Asian. By comparison, the distribution of non-fees-free students by ethnicity was European (62 percent), Māori (19 percent), Pacific Peoples (10 percent) and Asian (19 percent). Differences in fees-free and non-fees-free proportions by ethnicity are largely driven by differences in age profiles (for example, a higher proportion of Māori learners in tertiary education are older and less likely to be eligible for fees-free due to prior study).
Most provider-based fees-free students were enrolled in degree-level study (60 percent) and 35 percent were enrolled in non-degree-level study (Levels 3-7). This compares with 39 percent of non-fees free students who were enrolled in degree-level study and 47 percent in non-degree-level study.
Notes:
| |||||||
Characteristic | Fees-free | Non-Fees-free | |||||
---|---|---|---|---|---|---|---|
New | Continuing | Total | % | Total | % | ||
Gender | Female | 19,840 | 5,860 | 25,700 | 60 | 170,105 | 62 |
Male | 13,360 | 3,040 | 16,395 | 38 | 103,495 | 38 | |
Another gender | 405 | 95 | 500 | 1 | 1,390 | 1 | |
Unknown | 85 | 40 | 125 | 0 | 0 | 0 | |
Age group | Under 18 years | 1,460 | 40 | 1,500 | 4 | 4,230 | 2 |
18-19 years | 26,130 | 1,750 | 27,880 | 65 | 14,690 | 5 | |
20-24 years | 3,740 | 5,455 | 9,195 | 22 | 91,895 | 33 | |
25-39 years | 1,365 | 1,120 | 2,490 | 6 | 98,995 | 36 | |
40 years & over | 900 | 630 | 1,530 | 4 | 65,180 | 24 | |
Unknown | 85 | 40 | 125 | 0 | 0 | 0 | |
Ethnic group | European | 23,310 | 6,330 | 29,635 | 69 | 169,385 | 62 |
Māori | 5,405 | 1,755 | 7,160 | 17 | 53,265 | 19 | |
Pacific Peoples | 3,815 | 1,115 | 4,930 | 12 | 26,810 | 10 | |
Asian | 5,985 | 1,040 | 7,025 | 16 | 53,420 | 19 | |
Other | 1,490 | 445 | 1,940 | 5 | 15,460 | 6 | |
Unknown | 150 | 60 | 215 | 1 | 1,305 | 0 | |
Qualification level/type | Non-degree study (levels 3-7) | 10,860 | 4,050 | 14,910 | 35 | 127,875 | 47 |
Bachelors degrees | 20,900 | 4,920 | 25,825 | 60 | 107,500 | 39 | |
Post-graduate (levels 8-10) | 2,675 | 290 | 2,965 | 7 | 47,705 | 17 | |
Sub-sector | Universities | 22,565 | 4,310 | 26,875 | 63 | 125,610 | 46 |
Te Pūkenga | 6,975 | 3,425 | 10,400 | 24 | 95,640 | 35 | |
Wānanga | 185 | 180 | 365 | 1 | 23,395 | 9 | |
Private training establishments | 4,345 | 1,195 | 5,540 | 13 | 37,560 | 14 | |
Total | 33,685 | 9,030 | 42,715 | 100 | 274,990 | 100 |
Fees Free industry training learners
In 2022, only 45 industry training learners had their programme and assessment fees paid through the Fees Free policy. The TTAF policy essentially displaces the Fees Free policy as originally formulated (for industry training learners), so it is unsurprising that enrolments in fees-free industry training have declined sharply and remain very low.
Targeted Training and Apprentices Fund learners
This policy, which also supports learners to undertake vocational education and training without fees, was introduced halfway through 2020, and finished at the end of 2022. TTAF was targeted at non-degree study at levels three to seven regardless of any prior study or training.
In 2022, 169,845 learners received free tertiary study through the TTAF policy[3]. The majority of these (73 percent) were in workplace-based learning. Most were male (68 percent), European (54 percent), and over 24 years of age (67 percent).
Eligible training under the TTAF policy was targeted toward specific industry and skill areas. The largest of these were construction (33 percent of learners), then community support (17 percent), primary industries (17 percent), and manufacturing and mechanical engineering and technology (13 percent).
Figure 1: Fees Free learners 2018-2022, interactive graphWere study loads influenced by Fees Free study?
Table 2 shows the average study load of provider-based students from 2016 to 2022 with a split for fees-free status for 2018 to 2022. It is limited to first-time students aged 18 to 19 years to match the age concentration of most fees-free students. Since 2018, students that accessed fees-free have had an average study load of around 0.93 EFTS per student, compared with average study loads ranging from 0.59 to 0.68 for non-fees-free students. However, the total average study load has remained steady at around 0.90 EFTS per student both before and after the introduction of the Fees Free policy. The same pattern was observed by study level, ethnicity, gender and other factors. This indicates that eligibility criteria for fees-free, rather than fees-free itself, may lead to differences in study load.
Fees-free status | 2016 | 2017 | Fees-free introduced | 2018 | 2019 | 2020 | 2021 | 2022 | |
---|---|---|---|---|---|---|---|---|---|
Average study load (EFTS/student) | Fees-free | NA | NA | 0.93 | 0.92 | 0.93 | 0.94 | 0.94 | |
Not fees-free | NA | NA | 0.62 | 0.60 | 0.59 | 0.68 | 0.67 | ||
Total | 0.90 | 0.90 | 0.91 | 0.90 | 0.91 | 0.91 | 0.90 |
Were more courses completed in 2022?
Table 3 contains EFTS-weighted course completion rates for provider-based students from 2016 to 2022 with a split for fees-free status for 2018 to 2022. As for average study load, this table focuses on 18 to 19-year-old first-time students to match the age concentration of most fees-free students. Completion rates for 2022 fees-free students are higher than rates for non-fees-free students but are consistent with the rates for all students from previous years. This suggests that it is not the Fees Free policy itself, but factors related to fees-free eligibility, that affect course completion rates.
Fees-free status | 2016 | 2017 | Fees-free introduced | 2018 | 2019 | 2020 | 2021 | 2022 | |
---|---|---|---|---|---|---|---|---|---|
Course completion rate | Fees-free | NA | NA | 84% | 84% | 85% | 84% | 83% | |
Not fees-free | NA | NA | 72% | 75% | 67% | 73% | 73% | ||
Total | 84% | 84% | 83% | 83% | 84% | 83% | 82% |
An explanation of the Ministry’s method for calculating completion rates is available here.
Have qualification completion rates changed?
With the Fees Free policy in place now for five years, it is possible to consider whether the policy has influenced qualification completion rates.
Table 4 shows three-year qualification completion rates for 18 to19-year-old full-time students in provider-based settings. This group of students makes up the majority of those who are eligible for fees-free study and enables a comparison to be made between those who started their study between 2018 and 2020, and those who started in 2016 or 2017 prior to the introduction of the policy.
The data shows that while these three-year completion rates vary from year to year, there is no clear pattern of either improvement or decline after the introduction of the Fees Free policy. It should be noted that, in addition to those who complete within three years, about half of bachelors students continue their studies after the third year, with around a quarter of the starting cohort completing their degree in their fourth year.
NZQF level of study | Fees-free status | 2016 | 2017 | Fees-free introduced | 2018 | 2019 | 2020 | |
---|---|---|---|---|---|---|---|---|
Qualification completion rates | Certificates Level 3 | Fees-free | NA | NA | 80% | 73% | 72% | |
Total | 76% | 74% | 74% | 71% | 71% | |||
Certificates Level 4 | Fees-free | NA | NA | 70% | 70% | 70% | ||
Total | 71% | 74% | 71% | 72% | 71% | |||
Certificates / diplomas Levels 5-7 | Fees-free | NA | NA | 67% | 62% | 64% | ||
Total | 64% | 68% | 68% | 63% | 65% | |||
Bachelors degrees Level 7 | Fees-free | NA | NA | 35% | 36% | 33% | ||
Total | 33% | 34% | 34% | 36% | 33% |
Participation rates in tertiary education
In 2022, 11.8 percent of the total New Zealand population aged 15 years and over was enrolled in tertiary education, down from the 12.0 percent seen in 2021, but still higher than 11.1 percent in 2020. This is probably due to continuing enrolments in longer programmes of study. Participation rates had been falling since 2009, in line with improving economic conditions in New Zealand. The increase in 2021 reflected the increase in tertiary study seen in that year, due in part to the economic shock of the COVID-19 pandemic.
For fees-free, the participation rate also decreased, in line with lower enrolments generally, falling from 1.2 percent in 2021 to 1.0 percent in 2022.
The fees-free participation rates decreased across all ethnic groups except Asian. The rate declined by 0.2 percentage points for Māori learners, and by 0.3 percentage points for Pacific learners from 2021 to 2022. However, participation rates in TTAF study in 2022 were 5.3 percent for Māori, 5.2 percent for Pacific Peoples and 4.1 percent overall, up from 3.9 percent in 2021.
Student loan borrowing
Table 5 shows the number of domestic EFTS, the number of student loan fee borrowers and the total amount borrowed each year from 2016 to 2022. Domestic EFTS are a measure of tertiary enrolments by citizens and permanent residents – most of whom are eligible to borrow from the student loan scheme.
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
---|---|---|---|---|---|---|---|
Domestic EFTS | 209,350 | 204,050 | 203,360 | 201,410 | 201,600 | 219,400 | 206,700 |
Number of fee borrowers | 164,285 | 158,485 | 126,860 | 126,385 | 124,145 | 120,875 | 108,775 |
Fee borrowing ($ million) | 1,060.2 | 1,039.3 | 845.1 | 866.1 | 870.6 | 874.3 | 802.5 |
The Fees Free policy was introduced in 2018 and coincided with a slight decrease in the domestic tertiary student population (EFTS) of 0.3 percent. In that year there were around 31,600 fewer students borrowing for fees – a reduction of 20 percent compared with a year earlier. The total amount borrowed fell by $194.2 million or 19 percent. But because the domestic EFTS fell by only 0.3 percent, we can say that most of this decrease can be attributed to the Fees Free policy.
From 2018 to 2020 the number of fee borrowers remained relatively steady when compared with domestic EFTS. In 2021 and 2022 however there is some evidence that fewer tertiary students were borrowing. From 2017 to 2022 the average amount borrowed for fees by fee borrowers has increased by between 1.6% and 3.1% each year.
Further data on student support (loans and allowances) can be found on the Ministry of Social Development’s StudyLink statistics page. The Student Loan Scheme Annual Report for 2022 is available on Education Counts.
Footnotes
- One equivalent full-time student (EFTS) unit is defined as the student workload that would normally be carried out in a single academic year (or a 12-month period) by a student enrolled full-time.
- Formal study refers to learning that is organised, intentional, institutionalised (but not just provider-based) and nationally recognised. For this report, only provider-based formal study of greater than 0.03 EFTS (more than one week’s full-time duration) is counted.
- Based on data supplied by the Tertiary Education Commission dated 27 April 2023.