Some will miss out as demand soars

Polytechnics will be forced to turn away students as government concern mounts over high demand for student loans, an industry leader says.

Institutes of Technology and Polytechnics (ITP) of New Zealand chief executive Dave Guerin said polytechnics would have to restrict midyear enrolments as they waited to see whether they would be penalised for exceeding enrolment caps.

Polytechs can exceed forecast enrolment numbers by 3 per cent, but extra students do not attract government funding.

If they enrolled more than 3 per cent extra, they could be penalised by the Tertiary Education Commission.

Guerin said the Government was concerned that although it would not be subsidising the extra students, high enrolments would add to the cost of loans and allowances.

Between January and April 2007 and 2008, demand for student loans remained relatively stable, with loans for polytechnic fees costing the Government $96.4 million and $96.7m, respectively.

In comparison, in the first three months of this year, polytech students received $118.6m for fees, a 23 per cent increase on last year.

Guerin said qualifications in nursing, teaching, science and many trades were in high demand, but some polytechs had already reached capacity.

"In some courses, it will be first in, first served."

He said Education Minister Anne Tolley had told him she had asked the commission not to penalise ITPs that exceeded their caps.

However, he was yet to receive a commission response.

"We're not talking about extra money, but in the next month should ITPs enrol another 1000 or 10,000?" he said. "They need to know whether they are going to be penalised or encouraged to get in and help their communities."

Guerin expected demand to increase in 2010 as unemployment rose and current students moved through the system. Both the Aoraki Polytechnic and Nelson Marlborough Institute of Technology (NMIT) were expecting to exceed the 3 per cent cap.

NMIT chief executive Tony Gray said the polytech was working to a tight budget and could not afford to over-enrol its courses.

Commission director tertiary network David Nicholson said the commission had not removed funding from any ITPs exceeding their enrolment caps this year.

ITPs facing significant enrolment increases were expected to discuss the situation with the commission.

A spokesman for Finance Minister Bill English said the Government was tracking enrolment numbers and expenditure.

- © Fairfax NZ News