Bennett confused over access to TIA funding
new-zealand-labour-party
Mon Aug 03 2009 12:00:00 GMT+1200 (New Zealand Standard Time)
Bennett confused over access to TIA funding
Monday, 3 August 2009, 8:44 am
Press Release: New Zealand Labour Party
Lianne Dalziel
Labour Spokesperson on Justice &Commerce
Bennett confused over access to TIA funding support
Labour’s spokesperson on Justice Lianne Dalziel has challenged Paula Bennett to spell out what parts of the student loan scheme apply to people who are trying to get off benefits by undertaking degree or diploma level courses.
“I am sick of Ms Bennett telling the public that people who would have been eligible for the Training Incentive Allowance (TIA) before she cut it, have other ways to help themselves,” Lianne Dalziel said.
“Paula Bennett stated in Parliament last week that ‘there is certainly access to interest-free student loans’ when questioned about course costs over $1000, transport costs, and childcare costs over and above other entitlements.
“And on TVNZ’s Q&A this morning she gave similar spin although she now appears to have cottoned on to the fact that beneficiaries can only borrow up to $1000 for course related costs on top of their fees.
“As the Studylink website points out, if people received the Training Incentive Allowance, the amount they could get for compulsory fees and course-related costs went down by the amount of Training Incentive Allowance received (not including childcare, transport or disability-related costs).
“This means that depending on the course requirements, many people on benefits and receiving the TIA would have already been borrowing the full amount for course fees and up to $1000 on course related costs.
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“This deliberate fudging of the issue proves that Paula Bennett either didn’t know or didn’t care whether these people were able to borrow what they needed when she made the decision to restrict access to the TIA to low level certificates.
Lianne Dalziel said many parents on qualifying benefits chose to enrol for study in these high level degree courses like nursing, teaching, midwifery and social work, not because of the high incomes they could earn, but because there were guaranteed jobs on the successful completion of the study.
“It is important to remember that we are talking about people who are trying to move off the benefit – that is why they so often choose these courses – and that the courses they choose produce the skills New Zealand needs.
Lianne Dalziel has suggested three options for the Minister to consider: 1- restoring the TIA as a grant as it was, 2- extending the amount that can be borrowed under the Student Loan Scheme by the amount of the existing TIA (currently $3,862.40), 3- reinstating the TIA for the degree or diploma qualifications that would address New Zealand’s continuing skill shortages.
“This third option would find a real synergy between the needs of single parents who want to get off the benefit and New Zealand’s needs given the number of vacancies in nursing, midwifery and many parts of teaching and social work. It would be a win-win,” said Lianne Dalziel.
Extract from Sudylink Website
Situations where you can't get all parts of the Student Loan
If you're on a benefit
If you get the Domestic Purposes, Widows or Invalids Benefit, or Emergency Maintenance Allowance from Work and Income, you can only get a Student Loan for compulsory fees and course-related costs. You can't get a loan for living costs.
If you get any kind of benefit, make sure you talk to your Case Manager first if you are thinking of study.
If you get the Training Incentive Allowance
If you get the Training Incentive Allowance, the amount you can get for compulsory fees and course-related costs goes down by the amount of Training Incentive Allowance you get (not including any Training Incentive Allowance you get for childcare, transport or disability-related costs). Your Work and Income Case Manager can tell you more.
ENDS
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