COHORT part I: The plight of the struggling student

Students waiting for exams, 21 October 1977, Christchurch Star

My name is Charlotte, and I’m weighed down by an astronomical amount of student debt.

Even as I type this very sentence, that debt – depressingly – continues to grow. That’s because not only do I have a student loan, I also take out weekly living costs to cover expenses. And unlike a student allowance, loan living costs are a weekly payment that must be paid back.

My mother Christine, however, did not have any such experience when she studied in the 80’s.

Back then, there was no WINZ-wrangling, there were no hours spent on hold to Studylink listening to Stan Walker’s smash-hit “Little Black Box” on repeat. In fact, my mum had no loan at all. In her day, she got by with summer jobs and a bit of part-time work throughout term time.

Student debt was still a relatively foreign and unfamiliar concept - a far cry from the state of things at present.

When examining the sheer expense of tertiary education now, you'd be forgiven for thinking it’s always been this way.

But, according to the Te Ara Encyclopaedia of New Zealand, that’s not the case. Quite the opposite, actually. There was a period between 1962 and 1988 where students were literally *paid by the government* to attend university.

Scarcely believable, right?

But alas, it's true. Students in New Zealand from 1962 onwards received a nifty little bursary that covered both living costs, AND university tuition fees. For this reason, the 1960s and 70s were widely regarded as the “glory days” of student life.

Dr Sam Adshead discussing enrolment with student Craig Berry at the University of Canterbury, 23 February 1982, Christchurch Star

Initially, most students were part-time and worked when not studying. But the introduction of the fabled bursary encouraged students to forgo part-time employment and commit to study full-time (a bit of a wild concept nowadays).

Research by UK online learning provider FutureLearn serves as a stark comparison between then and now. In 2022, Kiwi students fork out an eye-watering average of $8595 per student per year, compared to the median annual cost of study internationally - $5240.

The current state of our tertiary sector can be traced back to its dramatic upheaval in 1989, when the then-Labour Government introduced university tuition fees across the board. Although initially low in cost, the introduction of these fees can quite possibly be considered the beginning of the end for care-free (relatively speaking) student life.

Crowded House said “don’t dream it’s over” – but by 1989, it most definitely was.

According to Te Ara, “from 1989 means-tested student allowances replaced bursaries, which had traditionally covered fees and living costs. Fees increased, and a student loan scheme, through which students could borrow money for fees and living costs, was introduced in 1992.”

Prior to this, the average annual fee was only $129. But the new decade saw a 969% increase, bumping tuition up to around $1250 per year.

Changes to the sector from then on were swift. The Lockwood-Smith National government’s “user pays” philosophy brought about the transition from heavy government funding to a model that placed further financial responsibility on the students in question.

1992, as mentioned, saw the birth of the student loan scheme. By 30 June 2010 – not 10 years later - 894,000 people had taken out a student loan, and the total amount owed by borrowers was $11.145 billion.

And so it was that student debt slowly – but steadily – grew into the 16.3-billion-dollar beast that it is today.

Kosco, 2020


There’s no denying that we’re all in a bit of a pickle where the cost of living is concerned. At times, the financial dent left post-supermarket shop feels equivalent to having sold your soul, your liver and your first-born child in exchange for a pitifully small selection of vegetables.

And the current outlook, unfortunately, appears rather grim. The Consumer Price Index, (also known as the rate of inflation) used to measure the change in price of goods and services, is currently around 7.3% annually as of the end of September 2022; a circa 30-year high.

And according to ASB Economist Nathaniel Keall, it’s not necessarily set to get much better any time soon.

“The Reserve Bank generally tries to keep it within a 1-3% annual rate – at the moment our forecasts don’t see it getting back into that level until 2024 at the earliest.”

He says that, while he believes inflation has peaked, the risk of the CPI remaining consistently high in the coming months – even years – is very real.

For some students, the current cost of living is indeed unliveable, and turning to their respective University students' associations is their last resort.

University of Canterbury Students' Association president Pierce Crowley says that a number of resources for students are available on campus to help alleviate hardship.

“The UCSA offers the UCSA Hardship Grant, which offers up to $1000 for students who need support.”

“The criteria is accessible for all our grants, as we want to ensure student in a position of hardship can access support quickly.”

The UCSA also has a no-questions-asked foodbank to assist students who can’t afford meals for the week. Students may come and grab what they need in terms of food and sanitary products, helping to lessen the load somewhat.

Victoria University of Wellington Students' Association – despite receiving the least amount of funding of all students' associations in the country – has a similar setup.

VUWSA communications manager Emma Maquire says they do all they can to help students out with the budget it has.

“We have a community pantry that provides free food to students, as well as free menstrual products.”

This serves as a vital resource for students, in a time where many are going without.

Overall cost of living: What's the current expense of essentials?

Partly driven by external forces such as Russia’s invasion of Ukraine, the price of necessities such as food, fuel and rent have spiked.

Food

Statistics NZ's food price index, used to measure the amount Kiwi households pay for food, shows a whopping price increase of 8.3% in the last year – the highest increase in 13 years.


Data Retrieved from Stats NZ

The Commerce Commission's recent market study into New Zealand supermarkets found they earn $1 million a day in excess profits.

In response to these findings and subsequent backlash, both Woolworths (Countdown) and Foodstuffs (Pak’nSave, New World, Four Square) announced a temporary drop in prices.

I approached Foodstuffs for comment from a representative, but they declined to participate in this piece.

Fuel

In March of 2022 there came an alarming hike in the cost of fuel that hit us all pretty hard in the pockets, with oil sanctions on Russia having a considerable hand in this.

The government took necessary steps at the time to lessen the price at the pump, slashing the fuel excise duty (FED) and reducing fuel costs by 25 cents to help those struggling with rising petrol prices.

However, with the FED cut set to end in January 2023, there are concerns that fuel prices could return to being more than $3 per litre.
 
In addition, the public transport price slash earlier this year, according to Metroinfo.co.nz, is set to end in January 2023.

But on the bright side, the "Free Fares" campaign, run by the Aotearoa Collective for Public Transport Equity, aims to make public transport free for students, community services card holders and under-25's.

This effort, at least, can be considered the tiniest bit of light for students on an otherwise dark, impoverished horizon.

You can read more about free fares here.

Rent

On average, tertiary students spend more than half their income on rent. the current average market rent across the board is $803 a month for students in a shared flat. (See: Studylink and Student Loans section)

Education Minister Chris Hipkins had the following to say: “We’ve taken steps to improve life for renters by limiting how often rent can be increased, prohibiting landlords from seeking rental bids, banning letting fees... We are focused on improving rental affordability and the supply of homes, as well as lifting people’s incomes by raising the minimum wage every year.”

But while the steady boom of NZ's housing market is beginning to slow down, the latest figures from Stats NZ indicate that the cost of rent is still on the up.

The Rental Price Index, used to measure the ebb and flow of the rental market, showed a 4.1 percent price increase for all rentals, including existing rentals and new tenancies, in the year to September 2022.

University of Canterbury Library, 2021


The words "Studylink" and "Student Loans" have the power to strike fear into the hearts of Kiwi students the second they are uttered - despite being services intended to ease hardship.

The student allowance in particular should - theoretically - be a comfort rather than a source of stress. Afterall, its very purpose is to cover students' weekly costs while they study.

However, research has shown that the current model may not be as fit-for-purpose as originally intended.

A couple of facts and figures for you:

• In 2022, the maximum entitlement for Studylink payments – for both student allowances and living costs – totals at $281.96 a week.
• Also in 2022, the median income for students including wages, student loan living costs and allowances is $801 a month while the median cost of rent for students is $803 a month.
• In 2020/21, 148,905 students borrowed from the government’s loan scheme, with borrowing averaging $10,479 per year.
  

These were the findings from a financial analysis of 730 University of Auckland students over a 6-month period. The woman behind the stats, Auckland University lecturer Dr. Sereana Naepi, says the findings prove University students aren’t simply having a gripe, and that their reality is one of genuine hardship.

"I wanted to provide the data that says these students aren't just whining, these students have a legitimate problem that we need to think about."

"The median income they're earning is the same as what they're paying in rent, and that becomes a problem because how else are they paying to eat?"

This sentiment is shared by the New Zealand Union for Students' Associations, a student advocacy group founded in 1929 and comprised of the various students' associations across the country.

NZUSA president Andrew Lessells says “student poverty is real and very little is being done about it.  The constant trend from our reports is that student poverty is getting worse and that student support is less and less available.”

But Education Minister Chris Hipkins says progress has been made in further supporting students.

He says the Labour Government has worked to make “University more affordable by raising student allowances by 58.1% between 2017 and 2022.”

In April this year there was a  $25 increase to the student allowance, bringing the weekly entitlement to where it stands now at $281.96 for a single student living away from home.

Minister Hipkins admits that despite this improvement, there’s a way to go. “As our record shows we have made good progress, but there is more we can do.”

On this point, Andrew Lessells of the NZUSA agrees.

“Increasing allowances by an amount that doesn’t even match the rent hikes that most students have seen is a slap in the face.  Add into the equation that most students aren’t even eligible for the full student allowance and the Minister celebrating this token gesture just seems callous.”

Pierce Crowley, the president of the Students' Association at the University of Canterbury, is also of the opinion that student support via Studylink does not go far enough.

“Our view is that the support provided by Studylink is not sufficient for the modern student. The means tested nature of debt-free support means that most students who need weekly financial support can only do so by going further into debt.”

He refers, of course, to loan living costs; a weekly support payment that is tacked onto you overall loan.

An enquiry into student wellbeing conducted by the NZUSA and tertiary education spokesperson of the Green Party, Chlöe Swarbrick, showed that a whopping $16.3 billion in student loans is owed by 730,000 New Zealanders. The median student loan is the 7th highest in the OECD (an organisation with 38 member countries), similar to that of Australia and Canada despite our comparatively small population.

The results of the enquiry, in which more than 4,500 students participated, painted a truly grim picture of the level of poverty Kiwi university students are facing.

The results showed that:

• On average, those living in a shared flat spend 56% of their weekly income on rent. 91% support rent controls and 82% support a rental warrant of fitness.
• Two-thirds of students regularly do not have enough money to buy food, clothing, pay bills, get health care or other basics. Disabled, Māori and Pasifika students were most likely to be in that position.
• One in six students said their shared flat didn't meet their needs but couldn't move because rents were too high.
• Two-thirds haven't been able to pay for transport or the costs of a vehicle.
• 91% said they would use public transport "more" if it was free.
• Most students (69%) reported a decline in mental wellbeing during the COVID-19 pandemic, and some said this negatively impacted their studies.
  

The research, released just hours after annual inflation in the year to June 2022 was revealed to be 7.3%, shows a "mismatch between student income and the cost of living" and that hardship could be leading to "poorer tertiary education outcomes" according to Chlöe Swarbrick.

The report suggested that “A Universal Education Income, a weekly payment to every student regardless of level of study, age, or parental income would help students meet day to day costs and reduce long term debt.”

"Everyone in this country deserves to live a life of dignity," Ms Swarbrick says. "Our new research shows that's a right denied to thousands of students. Political decisions over the last few decades have normalised and entrenched student poverty. This wasn't an accident. It can be fixed."

But according to Ministry of Education policy leader Andy Jackson, the government is not currently considering further increases to living support beyond annual inflation adjustments.

“Our current system of student support is generous by international standards. For example, student loans have been interest-free for New Zealand-based borrowers since 2006, and first-year study has been fees-free since 2018."

"These changes represent a significant financial investment by the Government to manage the affordability of tertiary education for students.”

But while the government has taken steps to achieve further support for students, the process of applying for an allowance is widely regarded by students, including UCSA president Pierce Crowley, as unnecessarily complicated.

“The Studylink process is cumbersome. While not exhaustively difficult, I have found in my own experience, and through other students, that accessing broader services from the loan can be difficult.”

And many students agree that the application process requires them to “jump through hoops” to receive the payments they are entitled to.

Holly Dashwood (She/her)

Holly and her blue-tongued skinks, Sokka and Suki. 2021, Liv Taylor


Holly Dashwood, a 21-year-old Wellington-based student, is in the rather enviable position of owing only $1500 on her student loan. However, she says she didn’t pull this off easily.

While she took out a loan for each year she studied, she worked "a rotation of 4 jobs" to pay it off as she went and "avoid leaning on course-related costs.”

But as she entered her second year of uni, circumstances required her to apply for financial aid on top of this. When asked about the process of applying, she described it as "needlessly difficult."

”It can take weeks to months of sending documents, with the added slow response times from Studylink, I’ve often given up.”

And despite Holly’s loan debt being relatively small, she admits it still weighs heavy on her mind – and she says it’s soon to grow substantially.

As a postgraduate student, she is well and truly in it for the long haul, intending to pursue a Master’s in Criminal Psychology. And although excited for the day she can call herself Dr. Dashwood, she fears for the inevitable financial struggle that getting there will entail.

She says the financial support that Studylink provides post-grad students simply isn’t enough.

“The fear of failure under the weight of debt can feel debilitating. I’m appalled at the limited options for aiding postgraduate students and those over 25.

“I’ll one day be completing my PhD Thesis – due to lack of postgraduate support, I often lie awake at night wondering if it’s more of a dream than a plausible reality.”

She feels her future as she envisions it is up in the air. “I spend most waking moments worrying about the future. I worry all I’ve invested into my tertiary education will be for nothing if I can’t become a qualified practitioner in my field. If I can’t receive aid for my postgraduate studies, the prospect that I will – let alone that I’ll complete my academic dreams – is unlikely.”

She says that after years of working and studying to get by, she’s now suffering intense burnout, and is taking a year off study to recharge before embarking on her Master's journey.

Piata Otene (She/they)

Piata Otene, 2021

Piata Otene, a first-year fine arts student from Ōtautahi, receives the full $281.96 entitlement. Despite this, they say their experience with Studylink over the years has been upsetting due to rehashing their parental status each year, as a student with a deceased parent.

But Studylink General Manager of Client Service support, George Van Ooyen, says the goal is not to make students’ lives difficult.

“We aim to make applying for student support as simple as possible, while still collecting all of the information required to assess entitlements.”

In response to Piata’s situation regarding re-submission of a single parent form, Mr. Van Ooyen says that this process is necessary.

“We only request information we need, and where possible, we try to use information we already hold.”

Conversely, he denies that students are asked to re-submit information on a deceased parent.

“When a student is reapplying for Student Allowance with independent circumstances, or based on the income of only one parent, information is only required if their circumstances have changed since the previous application.”

However, the Studylink website shows that a parent form detailing that they are the sole parent of a student is required each time to assess their full allowance and loan entitlement. Piata believes this isn’t good enough.

“Sensitive issues like this should be kept on file for people, same for chronic illnesses or disabilities. These things don’t change or disappear.”

“The system feels dehumanising and insensitive, and it’s frustrating having to partake in it to live.”

In short, Piata is fed up with the Studylink system – and she isn’t alone.

Arcturus Trail (He/him)

Arcturus Trail, also a student, receives an entitlement of $281.96 per week from Studylink – the catch is, he has two intermediate-aged children to feed alongside his partner, who works full time.

While Arcturus only receives the standard $281.96, for single students with no children, he and his partner qualify for WINZ’s Working For Families payments, which help to fund the children’s extracurriculars.

But he says the amount he receives from Studylink is “a pittance”.

“It’s only enough for basic expenses. The duration of a degree is a long time for a family to scrape by.”

But Ministry of education policy leader Andy Jackson say that students with children to support are eligible for a higher rate of student allowance than those without children.

“For example, the rate for a single student with 1 or more supported children is $451.25 (after the M tax rate). The rate for a single student 24 or older not living at home is $319.74 (after the M tax rate).”

However, this amount can only be received if a student and their partner collectively make less than $481.40 per week, which means Arcturus doesn't qualify.

He says more often than not, the disposable income left over at the end of the week is around $20, and limits options for he and his partner to enjoy quality time with their kids beyond the confines of their house.

“Quality of life beyond the house is definitely stretched thin.”

It's stories such as these that motivate the New Zealand Union of Students’ Associations debt-free Future Campaign, launched in mid-October.

The campaign aims to

• Re-implement the three-years fees-free policy and have it amended to be based on equivalent full-time study.
• Make Taught Postgraduate Degrees free.
• Increase the income repayment threshold.
• Implement the recommendations from the Peoples’ Inquiry into Student Wellbeing, particularly the provision of a Universal Education Income.

But when asked about the debt-free future campaign, National’s education spokesperson Penny Simmonds said it simply isn’t realistic to be pooling more funding into the tertiary sector when it’s needed elsewhere.

“It's difficult to justify prioritising more expenditure on reducing fees for Tertiary students ahead of other priorities. The greater proportion of Tertiary education expenditure is already borne by the taxpayer.”

The Priorities Ms Simmonds is referring to include health, housing, compulsory education sector, disabilities, early childhood education, beneficiaries and youth unemployment.

You can sign the debt-free-future petition on Action Station.

2022


No, the kids most definitely are not alright; the People’s enquiry into student wellbeing conducted by NZUSA paints a concerning picture of the collective mental state of students in Aotearoa. In short; we’re a pretty depressed bunch.

Released in July of this year, it showed the rising cost of living is causing mental hardship for many, with some students adding that those who were in tertiary education a long time ago do not understand the day-to-day struggles of the contemporary student. 

Many respondents felt that university counselling services were inaccessible, with less than 10% of respondents stating they were currently using on-campus mental health services. Students stated they felt “embarrassed to seek help,” and cited long wait times as a deterrent to accessing university wellbeing services.

But according to UCSA president Pierce Crowley, steps have been taken post-covid to make health services more accessible.

“This mainly concerns improving the systems that were in place. This includes the Health Centre now setting aside counsellors and trained mental health staff for immediate intervention so everyone presenting with mental health related needs can get an appointment on the first visit”

An additional 2019 study into student wellbeing conducted by Lincoln University academic Sylvia Nissen, entitled “Student debt and wellbeing: a research agenda”, has shown that 37% of students expressed anxiety about their loans - particularly those with higher levels of debt.

Despite their concerns, the study found that students were reluctant to ask for help, lest they be seen as whiners.

It revealed a common coping mechanism amongst anxious students is “trying not to think of the future to keep your sanity in the present.”

In response, Education Minister Chris Hipkins said Labour has been taking steps to improve mental health services for students.

“We’ve made the biggest investment in mental health in New Zealand’s history, including strengthening mental health and wellbeing services for students enrolled in tertiary institutes.”

“There’s now mental health help at local doctors and schools around the country, as well as universities, online, on the phone and through smart apps.”

Disclaimer; this list is limited to the top 4 largest parties in Parliament; Labour, National, Greens and Act.

Prime Minister Jacinda Ardern says that “Education is the greatest enabler in society.”

But although our Labour government presents as fairly student-friendly, it hasn’t followed through on a lot of promises it has made to students. Their tertiary education strategy says we need “barrier-free access to education to address equity gaps,” but NZUSA president Andrew Lessells says “the Government refuses to support students to be able to live. Their words are excellent, their work is not.”

“The current Labour Government has broken most of the promises it has made to students, from postgrad allowance to three years Fees Free.  Every positive change Labour has made to student support has been tinkering around the edges of a broken system.”

Labour hasn’t yet announced its tertiary policies for 2023, but Education Minister Chris Hipkins says that Labour is committed to working for students.

“We’ve boosted student loans and allowances by $79 a week and made the first year of study fees free. We brought back Government funding for adult night classes, to give New Zealanders more opportunities to learn. We also provided financial support for tertiary students during COVID, to help ease the pressure so they could continue their studies.”

Our opposition, as it stands, says that while easing student hardship specifically is not the priority, their main motivation is tackling the root of the cost-of-living crisis, bolstering our economy and creating a future better fit for Kiwi students in a broader sense.

Education spokesperson Penny Simmonds’ student pitch for National is as follows:

“Tertiary students need to have hope that NZ will be a good place for them to not only study but also graduate. So, they need to know that National will have Tertiary Institutions that are credible and viable but also a National Government will create an economy that will be strong and growing so that there will be well paid jobs available for students and graduates rather than having to head overseas.

National will ensure that NZ will have a taxation system that also doesn’t drive skilled workers overseas. Nationals 5 point economic plan to control inflation and address the cost of living crisis will be critical to achieve greater productivity for businesses and enable economic growth to support good jobs and higher wages. Lifting the tax thresholds will enable graduates to keep more of their earnings.”

As previously mentioned, Ms Simmonds believes prioritising a debt-free future for students is not realistic and should not be the government’s main concern. They intend to scrap Labour’s first-year-free policy should they be elected.

Their 2020 policies were largely international student and STEM student-focussed.

She says an announcement of National’s tertiary-related policies will come late 2022-early 2023.

According to student advocates, including the NZUSA, the Greens win out as the most student-friendly party. President Andrew Lessells says that “Currently the Greens are the only party talking about making the student allowance universal and reintroducing the postgraduate student allowance.  If an election were held tomorrow, students would have a pretty clear idea of who’s got their back.”

(Note: one aspect of this is not correct; The Māori Party has also expressed intent to re-introduce a post-graduate allowance as of 2020.)

However, he says that the Greens won’t be students’ only option come election time.

“there are 400,000 students across Aotearoa and if we stand up and make noise before an election about what we need… we will see more promises to students from across the political spectrum. 

“Students are one of the largest political interest groups in the country, if we stand in solidarity and use this power, every party will have to listen.”

Green’s tertiary policy includes the following:

• Free tertiary education
• Student loans remaining interest free
• A universal student allowance
• Support for alternative education pathways eg. Trades
• Accessible tertiary education

Read more about their tertiary policy here.

ACT’s policies, in short, are not dissimilar to National’s. At their core, ACT are fiscal realists, believing in lessening the load for the taxpayer. While they don’t currently have any tertiary-specific policies, they did however ditch one of their more controversial policies; adding interest back onto student loans. In addition to this, they have a couple of mental health-focused policies that university students may benefit from.

But despite this, they plan to scrap student allowances if given the chance, which would leave uni students in a bad spot.

Act leader David Seymour has cited “irresponsible spending” by the government as a driving force behind the hike in the cost of living, and they aim to bring this down. Like National, ACT aims to tackle the root cause of student hardship eg. The cost of living and the housing crisis.

However, they’ve pledged to abolish the Human Rights Commission, so if you’re a minority or generally a person who cares about human rights, let’s just say that ACT may not be the party for you!

Please note that this is all subject to change pending tertiary policy announcements for the 2023 election.

Budgeting: Advice for students from Sorted's Tom Hartmann

I, a woman with little-to-no budgeting ability, had a chat to the Personal Finance Lead at Sorted.co.nz, Tom Hartmann, in the hopes of gaining some insight into how struggling students such as myself can get the most out of their money.

Tom Hartmann, 2022

Do you know much about the cause of the recent spike in the cost of living in New Zealand?

When there is more money chasing less goods (demand), or when those goods become more costly to produce (supply), you get inflation. In these times of Covid, we’ve had both happen! Much of it is happening in housing, which affects students less, but it has found its way into transport and of course the everyday products and food we buy.

Would you say the current cost of living is especially tough on students?

The rising cost of living is especially hard on anyone living on a fixed income these days, but even more so when incomes are lower towards the beginning of your working life. So yes, it’s especially tough on students, definitely.

Two-thirds of students regularly do not have enough money to buy food, clothing, pay bills, get health care or other basics. How can students better-navigate the cost of living crisis?

There are really only two ways: either increase income or cut expenses. On the income side, finding a side hustle or some gig work can help fill the gaps. On the expenses side, having a laser-focused plan for your spending (a.k.a. a budget) is a good way to start. Sorted’s budgeting tool is made for this.

But before just cutting things out randomly, it’s important to keep your spending as happy as possible. Meaning: you can rank your expenses by their emotional return: anything that leaves you feeling ‘meh’ you can cut, but you want to keep those things that keep you elated, that delight you. (There’s more on Sorted on how to do this.)

A 2022 study on student expenditure showed that on average 56% of a student's income is spent on rent alone. Do you have any budgeting advice for students whose sole income is through Studylink and/or low income part-time employment?

First off, let’s acknowledge that anything above 30% on housing is a stressful situation. Ideally, you’d want it even lower than that.

If you’re planning on studying, you want to avoid this situation any way you can. If this is already your situation, you may have to find ways to make it work, but we can all agree that it’s tough.

Anything you can do to come down from 56% will help, but otherwise it will take walking a financial tightrope to make that work.

How would you recommend students learn financial literacy? What resources are available to us?

At Sorted we’d recommend going beyond financial literacy actually, which is mainly about what you know. There’s a huge leap between knowing the right thing and doing the right thing.

What we need is financial capability, which includes the skills needed to handle money well… and actually doing it. It means we can meet our needs now, and be on track to meet them in the future.

Intriguingly, the experience of managing limited income as a student is a hands-on experience that can significantly lift your financial capability. If you can thrive on a shoestring, you will be better placed to handle a larger income down the line.

What advice would you give for students anxious about the cost of their student loans? Some are concerned it may impact their ability to save for a house, retirement etc. How would you recommend students approach saving for these while making loan repayments?

As a rule of thumb, you only want to be borrowing what you really need. But having said that, it’s important not to stress out too much about student loans, which are interest-free as long as you are here in New Zealand. There’s really no need to pay them off any faster than required.

Because of that, you can actually prioritise saving for your future goals while you pay off your loan in the background. Especially with any extra work you find, you can funnel money towards your future. And that student loan will get paid off in the end, too.

Disposable income is a necessity for maintaining mental health and enjoyment of life. How would you recommend students manage their money to ensure they have disposable income for hobbies, socializing etc? 

Definitely! You want to budget for the things you can enjoy too – call it a ‘splurge’ fund, for example. Again, you can make a plan for your spending and make sure it includes those things that make you most happy. You’ll find there’s lots you can do – you just can’t do everything at once! You also may find many things that improve your wellbeing that don’t cost much at all.

But how is one to budget without reasonable income? That's the question on everyone's lips, and the answer is simple; you can't. For this reason, many students, whether receiving Studylink payments or not - are finding it increasingly necessary to work their way through their studies.

As of 2019, 48 percent of full-time students have been required to find part-time employment while studying just to make ends meet.

Historically, hospitality and retail positions are the go, but are these still viable options while studying, with student burnout on the rise?

More on this to come.