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May 31, 2010 | by  | in News | [ssba]

Budget changes you should actually care about

Some things that happen do matter

Salient has a few questions about the changes made to the Student Loans scheme announced in Budget 2010.

We approached StudyLink for answers, and got fobbed off to the Ministry of Education, who hummed and haahed then said they would get them to us. Then right on deadline we got a call to tell us that we would not be getting our answers, as they were stuck with the Minister.

So you are missing out on your story this week because of Joyce.

But! This is important information that you need to know. Especially if you are looking at moving on to postgrad study.

These are swiped from the StudyLink website. So don’t blame us if you don’t like them!

Lifetime Limit for Student Loans
Introduced: 1 January 2011
• Lifetime limit of 7 EFTS (equivalent full-time student) for Student Loans, starting from study started in 2010.
• Full-time students have study loads of between 0.8 EFTS and 1.2 EFTS for a year. For a full-time student, 7 EFTS is equal to about 7 or 8 years of study.
• Once any part of the Student Loan is used, no matter what it is, such as living costs, fees, or course-related costs, that loan will count towards the 7 EFTS limit.

The 7 EFTS limit may be extended in these situations:
• If a student enrols in a course, which, in the one year of study, will take them over the 7 EFTS limit, they will be able to use a Student Loan to complete that year of study.
• An additional 1 EFTS is available for post graduate study.
• Up to an additional 3 EFTS are available for doctoral study.
• Generally, a student will not be able to receive more than 10 EFTS of Student Loan entitlement including these extensions.

Performance Requirement for Student Loans
Introduced: 1 January 2011
• To keep receiving a Student Loan a student will have to pass at least half of their course load EFTS.
• EFTS count starts once a student has used one or more parts of the Student Loan (living costs, course fees, or course-related costs).
• To give students time to adjust to tertiary study a student’s performance will be assessed once they have used 1.6 EFTS (about two years of full-time study).
• If a student does lose access to the Student Loan they can regain it by passing at least half of their EFTS without using a Student Loan or by providing evidence that there is sufficient reasons beyond their control for not passing at least half. They will also be able to regain eligibility after five years as a result of the five year rolling assessment period.

Fee Changes
Introduced: 2012
• Administration fee to be renamed the Establishment Fee
• Establishment Fee increases to $60
• $40 annual administration fee will be introduced for Student Loans that are transferred to Inland Revenue
• Will not be charged any year where a student also had a StudyLink establishment fee charged

Changes to Residency Requirements for Student Loans
Introduced: 1 January 2011
• Permanent residents and Australian citizens will be subject to a two year stand down before they can receive a Student Loan.


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