WELLINGTON - Work and Income New Zealand is waiting to hear from about 80 students who were among 200-odd who missed out on their student allowance payments last week.
The payment problem, which Victoria University student assistance scheme manager Barbara Scelly said left some students "absolutely panicked," followed on from problems at the start of the year, including delays in loan approvals and mistakes in loan contracts.
Work and Income national student services spokeswoman Lorraine Williams said Work and Income staff had contacted about 120 students at the weekend who had had their allowance payments incorrectly credited to the overdraft on their loan accounts.
Forty students said they did not require financial assistance, and payments for the other 80 should be in their bank accounts today.
There were still about 80 students whom the department had not been able to contact because they had changed addresses, though some of them had contacted the department.
"The error occurred because these students receive a student allowance, topped up to the maximum available of $150 per week by way of the student loan living cost component," she said.
Future allowance payments would not be affected.
Ms Scelly was asked to help several students who panicked when their student allowances did not come through.
Those affected had received cost-of-living money at the start of the year while waiting for allowances or loans, which they had expected to be added to their student loans.
However, Work and Income last week stopped their allowances to recover that amount of money - from $300 to $450 - which was paid in March.
"Students are coming in now very distressed because they have spent hours trying to find out why their allowance has stopped."
Some students had assignments due, but had been unable to study because they were chasing up Work and Income and because they were stressed.
Ms Scelly said she had been asked to write notes to lecturers explaining why assignments could not be done.
Students throughout the country protested in March over delays and difficulties with their allowances and loans. Dozens were arrested.
"Our only crime is we're students, we're hungry and we can't pay our rent," one woman said.
- NZPA
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