Scholarships
When a scholarship is personal income
Students may get an educational scholarship payment to help fund their study and associated costs. Scholarships are considered personal income for Student Allowance, unless they are specifically paid for tuition fees, or are exempt from the personal income test.
Scholarships paid for tuition fees
Tuition fees are the fees a student must pay to the tertiary education provider for an enrolment in an approved programme. This includes tuition fees, examination fees and student levies.
Some scholarship agreements have an amount that is set aside for tuition fees, which the student must use to pay their fees. This amount is not personal income for Student Allowance. This is because the student cannot use that portion to support themselves or their family.
Any part of the scholarship paid to the student to use as they choose, or for costs other than tuition fees (e.g. course-related costs or general living costs), is included as personal income for Student Allowance.
When a scholarship agreement does not specify an amount to be paid for tuition fees, any part of the scholarship the student chooses to pay towards their tuition fees is still considered personal income for their Student Allowance.
Scholarships exempt from the personal income test
The following scholarships are exempt from the income test and are not personal income:
- NZQA Scholarship Monetary Awards
- TeachNZ scholarships (except the living costs portion of the Career-Changer Scholarship)
- Tulī Takes Flight: Career changer scholarships
- Bonded Merit Scholarship (no longer available)
- Canterbury Earthquake Scholarships (no longer available)
- Step up Scholarship (no longer available)
Charging scholarship income
When determining how to charge income from a scholarship, MSD must consider the student's situation using the following 2 principles:
- a scholarship paid in lump sums is charged weekly from the date the scholarship was awarded as this is the date the student became entitled to it
- a scholarship awarded for study in a particular year or years is charged for that study period
The following situations affect the way the 2 principles are applied:
- a scholarship awarded before or after the study year it relates to is charged from the date study starts, not from the date the award is made
- a scholarship awarded in instalments due to academic or study requirements is charged for the whole study period, not from the date the instalment is paid
For more information see:
Legislation
- personal income (definition) regulation 2 Student Allowances Regulations 1998
