Aidan Donoghue: Victoria University Students' Association President on the Government scrapping the fees-free scheme

University student groups want the Government to reconsider the scrapping of the fees-free study scheme. 

Finance Minister Nicola Willis has confirmed it'll end at the Budget, with 2026 being the final year students are eligible. 

Victoria University of Wellington Student Association President Aidan Donaghue says it's being binned as the cost of living bites. 

"There's huge opportunity costs...we can't work full time while also studying. So energy, heating, groceries, fuel - those are all just compounding on students as they try and better themselves." 

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Sunday Session podcast with Francesca Rudkin
from News Talks EDB.

Speaker 2 (00:12):
Let's hear from the students. Aiden donahue is the president
of the Victoria University Worlington Studio Association, and he joins me, now,
good morning, Aiden, Good morning. How do you feel about this?

Speaker 3 (00:26):
Gobsmacked is in one word to described how not only me,
but all students are feeling about this, you know, quick,
rapid change.

Speaker 2 (00:34):
What else the students saying, what else are they've been
talking to you about.

Speaker 3 (00:37):
They feel that the rug's being pulled out from underneath them.
Students who have started this year and last year have
been told that there is the promise of, you know,
some form of fees free, and with all the changes
from first last year and now it's looking very unlikely
that they will be able.

Speaker 2 (00:50):
To get that. Do you expect to see students drop
out in the first or second year of their degree
after this announcement?

Speaker 3 (00:58):
Look, I think it'll be a pressure point for students.
We're not you knowing that they'll have, you know, up
to twelve thousand dollars more debt at the end of
the road. So if I was in that decision, you know,
making that decision at the time, I would.

Speaker 2 (01:12):
Obviously, you know, this is something which has been spoken
about a lot. A lot of people have called at
waste will spend and we sort of had an inkling
that it could be on the horizon. What have you
preferred though, that they at least covered students who have
who are currently at university.

Speaker 3 (01:28):
I think at a bare minimum. You know, National didn't
cut it in the first instance. They changed it, so
they must have put some value on it. So for
those students who you know did in between twenty four
and aren't finishing this year, you know, engineering or law,
they won't be able to get it. Double majors, conjoint degrees,
all of them will be left out on the cold.

Speaker 2 (01:47):
It's interesting you say that, because what I've been hearing
from students over the last few days is that they're
reconsidering things like a double degree or post grade study.
They're going to get in and get out. That's the plan.

Speaker 3 (01:59):
Yeah, definitely, and probably get in and get out straight
to Australia is what I'd say.

Speaker 2 (02:03):
It's going to get to that. Do you think that
the universities will be concerned about this?

Speaker 3 (02:08):
Absolutely? For students to be doing it so tough, the
universities have had to put a lot and towards, you know,
supporting them with hardship, funding and et cetera. So I
think for universities it's a whole nother brings up the
question of their funding model entirely that.

Speaker 2 (02:22):
We're pretty excited this year though, I think that seven
out of eight New Zealand universities had sort of the
highest roles that they'd had in a long time, or
an increase in their roles. Do you think that you
know that's going to be reversed.

Speaker 3 (02:37):
It certainly won't be increased from domestic A lot of
those increases have been from international students, and you know,
after what the lessons we've learned from COVID just seem
to have haven't taken in.

Speaker 2 (02:45):
Okay, what kind of lessons.

Speaker 3 (02:48):
Well, when we rely on international students so much because
they pay, you know, multiple times the fees, you know,
if there is ever a crisis where we can't have
international students, the funding for universities all of a sudden
becomes untenable.

Speaker 2 (03:03):
Okay, So if it's potentially less students heading to the universe,
could that mean arise in university fees for some courses.

Speaker 3 (03:12):
The money's going to come from somewhere after, it's not
coming from the total students. So unless there's more from central,
I don't see any other choice for universities but to
raise fees for those remaining.

Speaker 2 (03:21):
Okay aid and talk me through some of the challenges
facing students financially at present.

Speaker 3 (03:26):
Well the cost of living is hitting us as hard
as low income earness. Naturally, there's huge opportunity costs that
we can't work full time while also studying, so energy, heating, groceries, fuel,
those are all just compounding on students as they try
and better themselves.

Speaker 2 (03:42):
And getting a part time job seems to be a
lot trickier at the moment.

Speaker 3 (03:47):
Yes, speaking from Wellington, it is certainly a mission and
a half. There's hundreds of applications for single jobs and
there's not many jobs that can accommodate for you know,
the flexibility of urse needs or that hours outside of hours.
So for students it's very competitive market to find a
job while studying, but also after studying is just as hard.

Speaker 2 (04:07):
The other thing I'm saying is, you know, when you've
got areas like you can't bring in a tigo. Those
universities have sort of become very popular of the last
few years. There's a huge demand on the flats. The
price of flats, the increase has just blown me away
from one hundred and fifty dollars up to two hundred
and thirty dollars for some flats.

Speaker 3 (04:27):
Yeah, exactly. And it's not like their quality is improved
by that much either. We all know famously and even
flats and what they're like. So for students, it's you know,
what do you forego to have one basic necessity?

Speaker 2 (04:40):
So you just touched on this before. We've got larger loans,
there's fewer graduate jobs around. Are you expecting more graduates
will look to head overseas to pay off their loans
even if it means they're paying interest.

Speaker 3 (04:52):
Absolutely. I mean it doesn't take some mathematics degree to
realize that if you're getting more than the five point
six percent interest overseas, that it's more rapal decisions to try,
you like in a market over there, to get a
job if it's very tough to find one here.

Speaker 2 (05:06):
Concerned that this is the first step to remove interest
free from the loans.

Speaker 3 (05:11):
Honestly, anything's possible. There was no indication that this was
on the cards, you know, last year with the changes,
So we're all very concerned what this means if they're
willing to make changes to a peace coalition departments.

Speaker 2 (05:24):
It's been hinted that trades and other sectors will get
some kind of fee assistance. How do you feel about this?

Speaker 3 (05:30):
Look, I think that's fair enough. This is both you know,
vocational learning and tertiary education are valuable and are needed
for this country. But you know tradees and apprentices are
paid to be there, will students pay to study, So
it's it is a balancing act.

Speaker 2 (05:44):
Okay, So you've already outlined some of the financial difficulties
that students are up against. Where else do you think
that the government should be looking to cut costs in?

Speaker 3 (05:53):
Look, there's there's there's multitude areas. You know, for example,
reinstating the full interest deductions original that's that's three billion
right there. The cost of the Fairies was six hundred
and seventy one million. You know, it's predicted that final
years three three would have cost two hundred and twenty
three million by twenty twenty eight, twenty nine, So you know,

(06:14):
the Fairies deal, that's three years of funding right there.
Property the intestroductions, that's thirteen years. The tunnel four you
know MPs to get to Warrington Airport fust so that's
three billion right there. That's not thirteen years of funding
that could have come from Aiden Donahue.

Speaker 2 (06:28):
Thank you so much for your time, appreciate it.

Speaker 1 (06:31):
For more from the Sunday Session with Francesca Rudken, listen
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