The introduction of the final Fees-Free tertiary education policy has been called a wise investment byBay of Plenty MP Tom Rutherford.

“This is exactly the kind of practical policy reform that will make a real difference for students in the Bay of Plenty and across New Zealand,” Rutherford said.

He highlighted that the policy’s design ensures taxpayer money is spent effectively.

“Unlike the previous first-year scheme, this approach rewards commitment and completion. It’s about backing students who demonstrate the dedication to see their studies through.”

Bay of Plenty MP Tom Rutherford.

Local tertiary providers, including Toi Ohomai Institute of Technology, will benefit from the streamlined implementation process managed by the Tertiary Education Commission and Inland Revenue.

“I encourage all eligible students in the Bay of Plenty to take advantage of this opportunity. This is about investing in your future and our region’s prosperity,” Rutherford said.

Starting January 2025, a policy will provide up to $12,000 in fee coverage for students completing their first tertiary qualification in their final two years.

“I’ve spoken with many local students who struggle with the financial burden of completing their studies. This policy tells them clearly: stick with it, and we’ll help you across the finish line,” says Rutherford.

Not everyone agrees with the policy change.

University of Waikato, Bachelor of Social Science student Belle Yeoman believes it will harm those who can’t afford university.

“The whole reason to have a first-year fee-free was to help people who struggle financially and to allow more high school graduates to go to university or at least explore it without thinking about the pressure of money,” Yeoman said.

“Now, having the last year fee-free, they’re helping people who have already been able to financially support themselves through the majority of their degree.”

Yeoman took advantage of the free first year, helping students explore their passions and the university’s offerings.

“It will make people second guess whether they should go to university or not,” she said.

“The other good thing about first-year fee-free is to know you can start at university, and if you aren’t enjoying your course, you can change, and there’s no financial pressure.”

Toi Ohomai's Windermere campus. Photo / File

The fees-free tertiary education and training scheme was introduced on 1 January 2018, Toi Ohomai Tumu Whenua ā-Rohe 2, executive director for Region 2 Huia Haeata, said.

“It covered fees for first-time learners in their first year of provider-based study or their first two years of work-based training, up to $12,000,” Haeata said.

In August, the Tertiary Education Commission hosted a webinar outlining the changes, and education providers had the opportunity to provide feedback on implementing the new process.

“The policy aims to motivate and reward learners for completing their qualification or programme and reduce the overall cost of their study and training,” Haeata said.

“Learners that previously received first‐year fees free will not be eligible for final year fees free.”

Toi Ohomai has not widely canvassed prospective learners about the impact of this change on their study decisions,

“However, current enrolments do not indicate that the change in fee-free funding is having a significant impact.”

Ākonga, in a one-year course, can access funding if it is their first qualification and they haven’t used fees-free financing before.

“For many ākonga, the financial burden associated with participating in tertiary study can be challenging - for themselves and their whānau,” she said.