Carrying forward fees-free entitlement

Carrying forward fees-free entitlement

Last updated 29 October 2019
Last updated 29 October 2019

This page details how the carrying forward (carryover) of remaining fees-free entitlement works.

Provider-based study

Fees Free is capped at $12,000 (including GST) per learner

  • There is no equivalent full-time student (EFTS) or credit cap in a learner’s first calendar year of study.
  • So, a learner eligible for Fees Free can receive up to $12,000 (including GST) of fees-free payments for any eligible provider-based study they undertake in the calendar year (see Figure 1).

Figure 1: In year fees-free entitlement

 Figure 1: In year fees-free entitlement

 

Eligible learners cannot opt to pay fees and bank their fees-free entitlement for future use

If a learner is eligible for Fees Free and is undertaking eligible study, they’re automatically using their fees-free entitlement. 

If the Fees Free website reports a learner’s eligibility status as ‘maybe’ (unknown) but the learner meets the eligibility criteria, they should complete and submit a statutory declaration by midnight 31 December of their first calendar year of study to claim their fees-free entitlement.

To access a statutory declaration, learners need to go to the feesfree.govt.nz and enter their National Student Number (NSN).

 

Learners can carry forward remaining entitlement

Learners who undertake less than 1 EFTS (120 credits) and use less than $12,000 (including GST) of fees-free payments in their first calendar year of study can carry forward their remaining fees-free entitlement (in dollars and EFTS).

Eligible learners are entitled to up to $12,000 (including GST) of fees-free or fees-free for up to 1 EFTS (120 credits) – whichever cap the learner hits first. A learner’s entitlement will stop when they reach either $12,000 (including GST) or 1 EFTS.

Figure 2: Across year fees-free entitlement

Figure 2: Across year fees-free entitlement

Carryover is based on calendar years

Each year we’ll calculate how much fees-free entitlement eligible learners who have undertaken eligible study in the year have consumed in EFTS and dollars. Because this is based on entitlement use to 31 December, carryover amounts are confirmed early in the following year.

Provider-based carryover examples

Usually, 0.125 EFTS is equivalent to 15 credits or points.

Credits and EFTS used in 2018

Fees-free payments used in the 2019 calendar year

Note dollar figures include GST

Does the learner have carryover?

How much carryover is the learner allowed in 2020 (or future years)?

Note dollar figures include GST

30 credits (0.25 EFTS) $1,600 Yes

90 credits (0.75 EFTS) and up to $10,400.

The learner’s fees-free entitlement will stop when they use either 90 credits or $10,400 – whichever is used up first.

60 credits (0.5 EFTS) $4,000 Yes

60 credits (0.5 EFTS) and up to $8,000.

The learner’s fees-free entitlement will stop when they use either 60 credits or $8,000 – whichever is used up first.

105 credits (0.875 EFTS) $12,000 No – they have reached the dollar cap. N/A

120 credits (1 EFTS)

$8,000 No – they have reached the EFTS cap N/A
120 credits (1 EFTS) $0 – for example, because the learner undertook level 3 Youth Guarantee study. No – they have reached the EFTS cap. N/A
135 credits (1.125 EFTS) $12,000 No – they have reached the EFTS and dollar caps. N/A

Industry training organisations

Eligible learners and their employer’s training costs are covered for the first 24 months of their training programme up to the value of $12,000 (including GST).

The 24-month entitlement is calculated:

1.   from the start date of the first programme in which the eligible learner is enrolled, and

2.   by only including the months in which the learner received industry training in an eligible programme or programmes.

Learners who have undertaken both provider-based study and industry training

We’ll check whether the learner has used:

1. 1 EFTS, and/or
2. $12,000 (including GST), and/or
3. 24 months of industry training.

If a learner hasn’t reached any of the above caps, they can carry forward their remaining fees-free entitlement.

Guidance on carryover

A carryover information sheet and carryover FAQs can be found on the Guidance page.