University of Otago medical students (from left) Nick Jones(23), Jonny Mair (24), Alex Hedley (23) and Mary Furniss (23) are unable to access student loans for their last year of training. Photo by ODT.
University of Otago medical student Alex Hedley is unsure how
he is going to come up with $20,000 to pay for his last year
Mr Hedley is one of about 130 New Zealand medical students
who will be forced to pay their final year of doctor training
because of a law change introduced by the National Government
in 2010 restricting student loan access to seven years of
However, Tertiary Education Minister Steven Joyce says he
would not introduce an exception for medical students, adding
they could pay for their fees out of the more than $26,000
grant they received in their final year.
Mr Hedley said he, like many others who gained post-graduate
entry to medical school, was unsure how he was going to find
such a significant amount of cash to pay for his last year of
study in 2017, which is when the policy takes effect.
''I would feel very uncomfortable going to my parents and
asking for this large sum of money,'' Mr Hedley said.
With banks unwilling to lend against future income, some
medical students would likely be forced to take a year off
study to save money for their final year, he said.
The grant students received in their final year was used to
pay for their three-month overseas elective, meaning it would
put them at a disadvantage if they used it to pay for fees.
He welcomed this week's policy announcement from Labour
promising to make dental and medical students exempt from the
seven-year rule, but was disappointed at the response he had
got from the Government.
Mr Hedley had been campaigning ''solidly'' for the past year
on behalf of the New Zealand Medical Students' Association,
but had come up against a brick wall in the form of Mr Joyce.
''It has been quite frustrating. [He has] been pretty
ignorant and just unwilling to comment on it.
''If, when push comes to shove, he is not willing to change
the policy, there is going to be a lot of people left out in
the cold and it is going to cause quite a lot of disruption
for medical training.''
Mr Joyce had suggested students get bank loans, but an
Official Information Act application filed by Mr Hedley
showed the minister had received advice from banks saying
they would not approve such large loans.
He had also suggested students ask family and friends for the
''We don't really see that as acceptable, because people
don't necessarily have family and friends to call on for that
amount of money.''
Mr Hedley could understand the logic behind the policy as a
way of getting students studying other subjects into the
''That rationale doesn't really apply to us, because, as
post-graduate students, we are working through the system as
fast as we can.''
The restriction was inconsistent with the university's policy
to give 30% of medical school places to post-graduate
students, who took at least eight years to complete their
Mr Joyce, while sympathetic with the plight of affected
medical students, said there were no plans to introduce an
Students could pay for their last year of study from the
$26,756 grant they received for their final year of study, he
The Government introduced the restriction after a
''blow-out'' in student loan costs during the last Labour
government, and if medical students received an exception,
other students would also expect one.
The Government would monitor the effect of the policy when it
came into force in 2017 and consider changing it, if it had
any ''unintended consequences''.
He also noted that medical students would be well paid after
Otago University declined to say whether it supported the
campaign or answer questions on the issue, which disappointed
''It's entirely up to [the university whether it supports us]
but I feel like they should have an obligation to support