Watch Focus: ‘Grossly unfair’ - Students suffer while landlords profit off allowance increases

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More tertiary students are being forced to skip class and apply for hardship grants to make ends meet as rents rise, while “mega landlords” continue to line their pockets off the back of student allowance increases

The student loan for living costs and student allowance rose by $20 last month following a $25 weekly increase in Budget 2022.

But not only has it been accused as not being available to the majority of students, the extra cash often ends up going to landlords through rent increases instead.

“They increase rents in anticipation of student allowance going up which feels I think to many grossly unfair,” Auckland Central Green Party MP and spokeswoman for tertiary education Chlöe Swarbrick told Focus.

“That’s not happening as a result of any special innovation or work that those landlords may have done, but simply because they know that students may have more money in their back pocket.”

It was recently found that on average, those living in a shared flat spend 56 per cent of their weekly income on rent, while two-thirds of students regularly do not have enough money to buy food, clothing or pay bills.

It’s seen a “significant” increase in students turning to the Auckland University Students Association seeking support.

“Being a student today is vastly different from being a student 20 or 30 years ago, there are so many different sorts of pressure on students,” AUSA president Alan Shaker said.

“I know students who have to work fulltime to make ends meet and obviously when you’re doing that, it puts a strain on your studies and it shifts your focus elsewhere.”

A recent inquiry looking into the mismatch between student income and the cost of living found the gap was causing significant anxiety and distress for many.

Aspects of the student allowance policy were also considered unfair in particular parent and partner income testing.

“The main issue with that is the presumption that parents are going to be in a position to financially support what are effectively their adult children undertaking tertiary study and as I think many of us find that just isn’t the reality,” Swarbrick said.

Shaker added: “I would love to see a universal student allowance for all students.

“Being a student is so, so different and I think we need to recognise that on the Government level as well.”

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