Yes, student allowance is income tested, meaning that the amount of allowance a student receives is based on their income and the income of their parents or spouse.
And now, in greater depth
As an expert in the field, I can provide a detailed answer to the question, “Is student allowance income tested?” Student allowance, indeed, is income tested, meaning that the amount of allowance a student receives is based on their income and the income of their parents or spouse. This method of income testing is commonly used to ensure that financial aid is distributed to those who are most in need.
Income testing is crucial in determining the eligibility and amount of student allowance because it takes into account the financial circumstances of the student and their family. This approach helps to ensure that the limited funds available for student allowances are distributed equitably among applicants. By assessing the income of the student, as well as their parents or spouse, a more accurate determination can be made regarding the level of assistance they require.
A quote from renowned economist Milton Friedman sheds light on the importance of income testing in providing financial aid to students: “A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both.”
To further enhance the understanding of the topic, here are some interesting facts related to income testing and student allowances:
The purpose of income testing is to prioritize financial support for students who come from lower-income backgrounds.
The income brackets used for testing eligibility may vary depending on the country or institution providing the student allowance.
Income testing typically considers various sources of income, including wages, investments, and government benefits.
Some student allowances may also take into account factors such as the cost of living in the student’s location or the number of dependents they have.
In some cases, students whose income exceeds a certain threshold may still be eligible for a reduced amount of student allowance.
To provide a comprehensive view, I have created a table showcasing an example of income brackets used for income testing in a hypothetical country:
Income Range
Student Allowance Amount
Below $20,000
$1,000 per semester
$20,000 – $30,000
$750 per semester
$30,001 – $40,000
$500 per semester
$40,001 – $50,000
$250 per semester
Above $50,000
Not eligible
Please note that the table is purely hypothetical and the actual income brackets used may vary depending on the specific system in place.
As an expert in the field, I can attest to the importance of income testing in ensuring fair distribution of student allowance funds. By considering the income of the student and their family, this approach aims to provide support to those who need it the most, offering opportunities for education and alleviating financial burdens.
See a video about the subject
In this YouTube video, Andrew from Auckland shares his skepticism about the announcement to remove income testing on student allowances. He argues that this move seems like a blatant election bribe, especially considering New Zealand’s financial deficits. Andrew questions the use of taxpayer money for this policy, raising doubts about the intentions behind the decision.
There are also other opinions
A student allowance is a type of income-tested benefit. This means that it is based on your income and assets, and that tax is deducted before you receive it. If you are receiving a student allowance, you may not be eligible for some other payments, such as the in-work tax credit.
If you’re receiving an income-tested benefit or a student allowance, you will not be eligible for this payment. Income-tested benefits are: You can get the in-work tax credit if your income is from accident compensation – including survivor payments, or paid parental leave.
Income-tested benefits, Student Allowance and New Zealand superannuation (NZ Super) are taxable income. This means tax is deducted by the Ministry of Social Development (MSD) before they pay you.
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What is the threshold for student allowance NZ?
The response is: If your parents joint earnings are more than $65,370.76 a year before tax, the rate you get for Student Allowance goes down. You can’t get a Student Allowance if their joint earnings while you study are more than: $118,936.35 if you live with them. $127,808.07 if you don’t live with them.
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Is student allowance an income tested benefit NZ?
The reply will be: When you’re in a recognised relationship , how much you get for a Student Allowance is based on your income and your partner’s income. Below is a guideline for what you could get based on your income and your partner’s income and other circumstances.
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What is 1.6 EFTS?
The answer is: We use a measurement called EFTS (equivalent full time study) to work out how much study you’ve done. Once you’ve studied 1.6 EFTS (this is around 192 points/credits, or about 2 years of full-time study), you’ll need to meet the passing requirements.
How many EFTS can you use?
Answer to this: There’s a limit to how many Student Loans you can get in your lifetime. Usually, you can only get enough Student Loans to pay for up to 7 EFTS of study. This includes the EFTS from all loans you got since 2010, where the loan paid for fees, course-related costs or living costs.
What is my student allowance weekly payment?
As an answer to this: Your Student Allowance weekly payment is $342.82 (after tax) or $392.70 (before tax). You worked last week and earned $350 (before tax). We don’t count $258.08 (before tax) as income, but the rest of your earnings, that is $91.92 (before tax), will be counted as income.
Can I get a student allowance based on my income?
Below is a guideline for what you could get based on your income and your partner’s income and other circumstances. If you’re getting a Student Allowance and your personal income is over $258.08 a week before tax, your weekly rate will then further reduce cent for cent. You work part-time and earn $350 a week (before tax).
How does a student allowance work if you work part-time?
Response will be: If you’re getting a Student Allowance and your personal income is over $258.08 a week before tax, your weekly rate will then further reduce cent for cent. You work part-time and earn $350 a week (before tax). Your partner gets $50 a week (before tax), so your total income is $400 a week (before tax).
Is a student allowance a WINZ benefit?
The student allowance is income tested, not asset tested (savings don’t matter, interest payments do). The accommodation benefit is typically asset tested but they don’t spell it out for any category except single parent on the Studylink site (which is $16k, twice the WINZ cut off for a ‘normal’ accommodation supplement on a benefit).
What is my student allowance weekly payment?
Answer to this: Your Student Allowance weekly payment is $342.82 (after tax) or $392.70 (before tax). You worked last week and earned $350 (before tax). We don’t count $258.08 (before tax) as income, but the rest of your earnings, that is $91.92 (before tax), will be counted as income.
Can I get a student allowance based on my income?
The answer is: Below is a guideline for what you could get based on your income and your partner’s income and other circumstances. If you’re getting a Student Allowance and your personal income is over $258.08 a week before tax, your weekly rate will then further reduce cent for cent. You work part-time and earn $350 a week (before tax).
How does a student allowance work if you work part-time?
Answer will be: If you’re getting a Student Allowance and your personal income is over $258.08 a week before tax, your weekly rate will then further reduce cent for cent. You work part-time and earn $350 a week (before tax). Your partner gets $50 a week (before tax), so your total income is $400 a week (before tax).
Who qualifies for means test federal benefits?
Someone in the household received certain means-test federal benefits in either of the last two years. If the student is dependent, the parent’s income must satisfy certain income thresholds. If the student is independent, the student’s income and the income of the student’s spouse (if married) must satisfy those income thresholds.
