StudyLink Lag Leaves Students In Limbo

StudyLink Lag Leaves Students In Limbo

Students report feeling broke and stressed due to StudyLink delays – what’s new?

Students all around Aotearoa have been facing some extra financial hardship over the last few weeks, with many failing to receive their expected StudyLink payments or living costs payments. With day-to-day costs already a pressing concern for students, delays in financial assistance have left many scrambling to cover their rent, bills, and other basic expenses.

The start of the year saw huge lines at AskOtago, as students tried to rush the ‘education provider confirmation’ step in their enrolment process. But it seems like backed-up lines of frustrated students weren’t just limited to AskOtago. Critic Te Ārohi has been approached by several students who, four weeks into the semester, have still not been accepted for a living costs payment – despite having received it in previous years. Others report delays in their payments and are struggling to make ends meet in the interim. 

When contacted, StudyLink told Critic: “We are experiencing a higher number of applications this year. We are ahead of last year in terms of the numbers of applications we have processed, and we have reallocated staff to respond to the high demand.” Long story short: StudyLink are busy as fuck. “We have processed 5,742 more student allowance applications and 16,273 more Student Loan applications compared to the same time last year,” they told Critic.

Rene, a second-year teaching student, is among those waiting for StudyLink confirmation. She told Critic Te Ārohi that she’d sent a document two weeks prior that they still hadn’t processed at the time of writing. She didn’t mince her words: “It’s a fucking fuck around.” Jono, another student Critic spoke to, noted that, despite not personally having issues with his StudyLink, he empathises with those who are: “You have to wait like two hours on the phone to get it sorted.” Brooke Fraser’s ‘Arithmetic’ gets old after the tenth repeat.

For students navigating StudyLink for the first time, the process has been equally – if not more – challenging. Tevya, a Masters student in Business and Marketing, explained to Critic that the process has been especially painful for her. She’s been trying to call StudyLink twice a week for the past month to sort out a mishandling of her application that would mean having to repay $1200 for Jobseeker payments while her loan application has been in the lurch. She’s been met with 90-minute wait times or being told that they were too busy to take her call. While StudyLink has advised she’ll be back-paid, the experience has been frustrating and stressful while easing into her Masters. 

StudyLink is a service of the Ministry of Social Development (MSD), which also oversees Work and Income. With job cuts last year within MSD, some students are left wondering if there might not be enough people to do the job. “It just seems ridiculous that you can jump the queue just by calling up – it's their job to process our applications. Why are we four weeks in and this is still happening?” one student wondered to Critic. Izzie, a fourth-year Geology student, has received the living costs payment throughout her degree so far but has yet to receive confirmation for this year. “I don't have a job, so I'm currently using my 21st gift money to pay for my expenses. I'll have to ask Mum for rent money next week.”

OUSA President Liam White acknowledged the widespread frustration among students – not just at Otago, but nationwide. With Otago experiencing an increase in enrolment (2.7% since last year) it comes as no surprise that many other universities are in the same boat. “[It’s] pretty scary to be honest,” Liam empathised. “On the StudyLink side it's full-on, not good enough.” 

StudyLink has reassured students that those whose payments have been delayed will be eligible for back-payment once approved – but only if they applied prior to their study start date. The University urges students experiencing delays in processing, or experiencing financial hardship as a result of this situation, to contact StudyLink to find out where their application currently sits and explain their financial situation. Students can also reach out to OUSA or the University’s Pūtea Tautoko Student Relief Fund for support.

This article first appeared in Issue 5, 2025.
Posted 9:11pm Sunday 23rd March 2025 by Molly Smith-Soppet.