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Students question university affordability after government scraps fees-free scheme

Students question university affordability after government scraps fees-free scheme

Source: Radio New Zealand

Matt (left), Coco, Adam, and Joseph. RNZ / Pretoria Gordon

Some University of Auckland students are questioning whether they can afford to continue their studies, after the government has announced it is scrapping the fees-free university scheme.

“I don’t speak for every student here, but I would not be surprised if a lot of students felt like leaving,” Joseph told RNZ.

“I was hoping it could be free, but I guess I’m more motivated now to make some money again.”

On Friday, Winston Peters revealed it would be scrapped in the upcoming Budget.

Finance Minister Nicola Willis later confirmed that to RNZ.

The scheme covered up to $12,000 for first-time tertiary students in their final year of study.

It was introduced by the former Labour government in 2017 as a first-year fees-free scheme, beginning from 2018, before the National-led coalition shifted it to the final year from 2025.

The announcement has hit current second-year students particularly hard, as many missed out on getting their first-year free and would now also miss out on the final year.

Student Coco told RNZ that she enrolled in university with the understanding that she would get a year for free.

“And then I just also think with the degree that I’m doing, I’d get paid better in Aussie, so it’s just even less incentive to stay here.”

Eve is in her second year of a Bachelor of Arts. RNZ / Pretoria Gordon

Eva, who is in her second year of a Bachelor of Arts, said many students in her cohort felt misled.

“Personally, for me, I was lucky enough where it doesn’t necessarily affect me, but I know so many people that they only made the decision to come to uni based on the fact that they would only have to pay for two years,” she said.

“So the fact that the first year was made third year already eliminated so many people from at least trying to go to university, and then now that it’s just gone completely, particularly with not even being rolled in, it’s just already been taken away from students that were relying on it, is pretty gross and tricked.”

First-year student Najesty believed that was unfair.

“I definitely think they should have waited for the people who were going into that year to finish it.

“I think it would have been fair for them because now they have to figure out a way to pay for it because it’s gone.”

Another first-year student, Samantha, agreed.

“It makes it, like, unaffordable.

“It was like a driving force for, like, you know, getting through university and now it’s, like, an extra cost that we all have to, like, bear.”

First-year students Samantha (left) and Najesty. RNZ / Pretoria Gordon

Speaking to Morning Report on Monday, Prime Minister Christopher Luxon said the scheme had been “quite a failure”.

But student Matt disagreed.

“It takes away so many opportunities for people who can’t afford it, who need that third year free.

“I personally am not affected because I have StudyLink and I have those options, but it’s still irritating that it’s gonna put extra financial stress on me in the future when this is supposed to be one of the main encouragements for people gaining higher education and for building a better future for New Zealand.”

Student Adam said it sent the wrong message at a time when youth unemployment and disengagment was high.

The NEET – not in employment, education, or training – rate for young people was 14.4 percent in the March 2026 quarter.

“I personally think that it’s quite an unnecessary discouragement of higher education,” he said.

“I think that’s an important part of New Zealand society in general. I think we should pride ourselves on having a good higher education in this country, and I don’t think cutting away third year free tuition is a good idea.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand