Labour would phase in a universal student allowance over the next four years if it wins the election.
Labour leader Helen Clark announced the $210 million a year policy on the campaign trail at Otago University today.
Miss Clark said the current parental income test on the allowance would be phased out by January 1, 2012, benefiting 50,000 students.
"Most of these students would receive no allowance under the current rules and need to borrow, receive help from their parents or work part-time, to make ends meet."
She said the policy would assist Labour's goal of creating a "knowledge-led society".
"This policy means that students will be borrowing less and will be able to move on more quickly from the costs incurred in getting tertiary education to set up their own homes and establish their careers."
Miss Clark said the policy was being phased in to ensure its affordability.
From January 1 next year the parental income threshold would be raised from $46,000 to $50,000, in 2010 it would rise to $70,000, in 2011 to $100,000 and would be abolished altogether in 2012.
She said 20,000 students aged 18-23 would be better off by 2010, 30,000 by 2011 and 50,000 by 2012.
The campaign revelation follows Labour's 2005 announcement to scrap interest on student loans.
That policy was a big winner with not only students and graduates, but also with parents and grandparents worried about their children's debt levels.
Labour insiders believe this policy will have a similar appeal.
source: newshub archive
