A Whangarei design school which caters for young creatives may have to close this year, because it looks likely to lose government funding.
The Design School managing director Mike Saywell said the decision is heartbreaking, if it means a lost opportunity for the region's young people.
"The creative talent in Whangarei and Northland is just incredible and [before we opened] there were no pathways, unless people did really well at school, there were limited options for moving forward," Mr Saywell said.
The Design School, at the corner of Walton and Robert streets, opened in 2014 and taught NCEA level 2 through 4 design, fashion and graphics courses. The level 2 courses were fees-free, but the Tertiary Education Commission indicated it would not continue to fund these next year.
Tegan Downes, 21, was among the disappointed students. Mr Downes had been living in Australia, homeless, before his family brought him back to Whangarei. His grandmother had suggested he start the Level 2 course as it was nearby.
"I started doing stuff I didn't even know I could do. It was a big eye-opener coming in, meeting all these new people," Mr Downes said.
He had been planning to re-enrol next year, but said he may now have to look at other options.
Fellow student Michelle Robinson had been working in administration before starting her fashion course this year.
"I think it's a shame it's closing because a lot of students who are creative may not fit in at school," she said. "Here, you find a place where you are accepted."
The school had about 40 graduates in its first year, and had another 40 about to graduate. Next year's enrolments were already almost full.
Mr Saywell said if something else equally good was funded in the school's place, he would be happy: "So long as there isn't a gap, I can live with that".
"The spin-off is it brings young people into the CBD, it's a win-win," he said.
Mr Saywell said he acknowledged that TEC funding was competitive.
"We've gone from thinking it was all going well - though knowing this could happen, don't get me wrong - but it's going to be quite heartbreaking."
TEC chief executive Tim Fowler said the commission was yet to formally confirm its funding, so he was limited in what he could say.
"We have had initial conversations with all applicants to give them an early indication of likely funding levels, and will shortly be sending final confirmation of the results of their application," he said.
Mr Fowler said the outcome of the competitive process would be published online.