Radio New Zealand - Te Reo Irirangi o Aotearoa

Government defends changes to student allowances

Updated at 5:38 pm on 8 May 2012

The Government is defending the effect its changes to student loans and allowances will have on thousands of post-graduate students.

From next year, the Government will cut access to allowances after four years' study.

The Labour Party says only wealthy people will be able to do post-graduate study.

Tertiary Education Minister Steven Joyce told Parliament on Tuesday about 4000 or 5000 post-graduate students will be affected by the law change.

However, he says those students will most likely have a significant income premium over others who do not go to university.

Mr Joyce says post-graduate students will still be eligible to borrow from the student loan scheme.

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