Universities New Zealand director Chris Whelan said for the majority of students, "significantly better employment and earning opportunities" made the income lost while studying worthwhile.
He said students were three times more likely to be employed once they gained a tertiary qualification.
The typical degree holder would earn $1.4 million over their working life and broke even at around 33.
One young solo mother studying her post-graduate at the University of Canterbury said free tertiary would have worked wonders for her.
She expected overall the Labour Government would be more focused on getting New Zealander’s educated than National was.
She believed judgement was put on her when she chose to study her post-graduate after having a child, and did not think the MSD focused on better outcomes for her or her child.
"National just said get off this benefit and work full time. When would I see my child?"
The Ministry loaned up to $500 a week for solo parents who studied below a post-graduate level.
The MSD has been approached for further comment.
National’s spokesman for Tertiary Education Paul Goldsmith said the policy could lead to a 15 per cent increase or 46,000 extra students in a matter of weeks.
He said this would lead to overcrowded labs and lecture theatres.
Overcrowded schools was what put many of Atkins students behind and drove them out of mainstream high schools in the first place, Atkins said.
Goldsmith said other questions "such as whether a course is free if a student fails to finish it are yet to be answered adequately".