The Social Development Minister is hinting the Government will review student allowance criteria, after RNZ revealed some students have been allegedly cheating the system.
Louise Upston told Newshub on Thursday the Government expects people who break the rules for claiming student allowances to be held accountable.
"And we are confident that the authorities are equipped to take enforcement action when people cheat the system," she said.
The minister stressed the Government won't be making any changes but will nevertheless take a look at the system.
"While we're not proposing changes to current student allowance settings, we'll review their suitability, including whether they safeguard against dishonest behaviour," Upston said.
Some tertiary students have said their peers have been getting the maximum student allowance, while still receiving payments from their parents, RNZ reported on Wednesday.
That would normally make them ineligible for allowance.
And students allege parents are in on the deal too - hiding their full income, assets or wealth in businesses or trusts to disguise their household income.
Student allowances are weekly payments that don't need to be repaid to the Ministry of Social Development, unlike the loan living costs payments.
Eligibility criteria for allowances is based on parental income, not wealth.
A student's parents must earn below a combined $128,000 if they're living away from home.
Newshub asked Upston if the Government thought assessing income rather than wealth was appropriate but she declined to answer the question.
Those students who don't qualify for the allowance are instead taking on thousands of dollars in extra student loan debt to afford to live while studying and they have said it's not fair.
One University of Canterbury student told RNZ both her flat mates receive the student allowance despite their parents being wealthy.
"It's a bit frustrating, just because I feel like they really don't need the help and they're the ones getting it," she said.
The student said her flat mates' parents' income was under the eligibility threshold but they had plenty of wealth in cash and assets.
She told the state broadcaster the system needed to change.
