John Key announced that the government will be assessing the education market in New Zealand to ensure that the $2.78bn the nation spends on tertiary (higher) education is being used effectively, and determining where New Zealand can get more value for their money.

Courses will be re-examined to ensure that they teach relevant skills necessary for employment, in order to ensure students have the knowledge and expertise required in the job market. Students themselves will also come under the microscope; those who fail to put in the required work and effort may find their applications for student loans and allowances refused in a move designed to ensure that government aid is only granted to those who are serious about their education.

Tertiary Education Minister Steven Joyce confirmed that the details of the edcuation reform have not yet been finalised, but has assured students and families that New Zealand’s policy of zero interest student loans will remain in place:

“The Prime Minister has signalled previously that the principle of the student loan scheme as zero interest remains the same. What we are looking at is around the edges where there are potentially issues in terms of whether it’s being used effectively to advance people’s studies or not.”

The New Zealand governments draft education strategy has also proposed funding institutions based on the performance of their students and their ability to satisfy key skills demands in the graduate sector.

Find out more about studying in New Zealand in our latest i-studentadvisor guide.