This update includes information about:

• Compulsory Course Costs clarification
• Changing the way Student Services Fees are regulated
• Pre-purchased English Language Tuition (PELT) New Learner Form
• Courses with zero fees

Compulsory Course Costs clarification

Through recent monitoring activities, we have identified that several TEOs are charging fees to learners that should be included in their compulsory course costs component and not as separate fees.

A reminder that the Minister of Education confirmed updated fee regulation settings for TEOs in 2022 which included clarifying which additional fees are considered to be compulsory course costs.

From 1 January 2022, providers cannot charge administrative fees for enrolment, exams and the award of NZQA credits.  These costs must be included within the compulsory course costs of your fees, which are regulated by the Annual Maximum Fee Movement (AMFM).

For those TEOs that receive TEC funding through the SAC3+ fund, your funding conditions for 2022 specify that fees:

1. mean tuition fees;
2. mean compulsory course costs that are charged to all students enrolled in a course, which includes (but is not limited to) the following: any compulsory costs associated with enrolment, examinations (including reporting of credits to the NZQA), field trips, and any compulsory purchase of equipment or books through you; and
3. exclude any administrative fees or charges (other than tuition fees of compulsory course costs) for additional services that are payable as a result of the specific circumstances of a student, which includes (but is not limited to) the following: reassessment or remarking of examination results, examination relocation fees, fees associated with recognition of prior learning or fees associated with an application for selected entry programmes.

We encourage you to double-check the fees you are charging to learners to ensure these are accurate and that you are complying with your conditions of funding for 2022.

If you have any questions regarding compulsory course costs, please contact your relationship manager, relationship advisor or email customerservice@tec.govt.nz

Changing the way student services fees are regulated

The recent enactment of the Education and Training Amendment Act 2022 will now allow for the regulation of student service fees through the funding mechanisms.  This change brings the regulation of student services fees into line with the regulation of most other fees, providing the Government with more flexibility when setting student services fee regulation and enables targeted settings for different groups of learners.

The Minister of Education is therefore undertaking public consultation on bringing the existing student service fee framework into the following funding mechanisms:

• Delivery at levels 1 and 2 and the New Zealand Qualifications and Credentials Framework (NZQCF) – formerly the Student Achievement Component (SAC) at levels 1-2
• Delivery at levels 3-7 on the NZQCF (non-degree) and all industry training – combining SAC at levels 3-7 (non-degree) and the Industry Training Fund
• Delivery at level 7 (degree) and above on the NZQCF – formerly SAC at level 7 (degree) and above

The proposed conditions have been published in the New Zealand Gazette and submissions close 31 August 2022.

The Tertiary Education (Requirements on student services fees) Notice 2022

Submissions can be sent by email to tertiary.strategy@education.govt.nz.

Pre-purchased English Tuition (PELT) New Learner Form

As part of their residency requirements, some migrants are required to pay English language tuition fees to Immigration New Zealand prior to arriving in New Zealand, and the TEC is responsible for administering the Pre-purchased English language Tuition (PELT) funding on behalf of Immigration New Zealand.

The PELT New Learner Form must be completed by PELT approved TEOs when they enroll a new migrant learner in an approved English language course.  We have recently updated the PELT New Learner Form, to make this more user friendly, and to ensure that all learner details are accurately recorded.  If you have not already updated your existing form, you can access the new form here: PELT New Learner Form (DOCX 175 KB)

For any questions, simply call us on 0800 601 301 or emailing customerservice@tec.govt.nz.

Courses with zero fees

Through recent monitoring activity, we have identified that some TEOs are incorrectly reporting eligible Fees Free learners who have undertaken courses with zero fees in their Fees Free All Enrolments and Costs Return.

The Fees Free funding agreement outlines that the TEC is only liable to make a payment in respect of a fee specified in a Fees Free enrolment report if that fee is charged to every student in the same circumstances who is enrolled in the same course, regardless of whether or not they are eligible for Fees Free tertiary education.

Therefore, to offer any course as having zero fees but report eligible Fees Free learners with a fee in the Fees Free All Enrolments and Costs Return report constitutes a breach of the funding agreement.

For any questions, please contact the TEC by phoning 0800 601 301 or emailing customerservice@tec.govt.nz.