Student Fee Protection Trust Deed - guidance notes for students

• What is the Student Fee Protection Policy?
• What is a trust and a trust deed?
• How should I pay my student fees?
• Who will pay my accommodation and living expenses?
• What happens if I withdraw from a course?
• What happens if my course closes?
• Where can I obtain a copy of the Trust Deed?
• What other resources are available?
• Who do I contact if I need assistance?

What is the Student Fee Protection Policy?

The purpose of the Student Fee Protection Policy is to protect your student fees in case the registered private training establishment (PTE) you are studying at no longer offers the course in which you are enrolled. The New Zealand Qualifications Authority (Qualifications Authority) requires all PTEs to put in place arrangements for the protection of student fees.

One of the arrangements that a PTE could use is where students pay their fees to an independent trustee and the trustee then holds those fees on trust for the student and the PTE.

What is a trust and a trust deed?

A trust is created when a person (the trustee) holds money for the benefit of another person or persons (you, the student, and the PTE). The Student Fee Protection trust provides for a trustee to hold and distribute your student fees in accordance with specific rules set out in a trust deed (the "Trust Deed").

The Trust Deed allows a trustee to make payments, from your student fees, to your PTE, accommodation provider or to you. Importantly, the Trust Deed ensures that a trustee will hold your fees in a separate trust bank account in case your course closes or you withdraw from a course and you are eligible for a refund of your student fees (or a portion of them).

How should I pay my student fees?

Instead of paying your student fees directly to a PTE, you should pay your fees directly to the trustee. This way, your fees are protected from the start. However, if you do pay your PTE directly, the PTE must pay the trustee on your behalf by the next business day.

If you are a domestic student and paying your student fees by student loan, the loan provider should pay the fees directly to the trustee.

Who will pay my accommodation and living expenses?

Some PTEs may require you to include payment for any hostel accommodation, homestay or other accommodation in your student fees. If so, the trustee will pay that money to the relevant accommodation provider directly on your behalf, or to the PTE in regular instalments to pay the accommodation providers.

Some PTEs may also require a lump sum payment of living expenses to be included in your student fees. If so, the trustee will pay you your living expenses in accordance with the payment schedule. PTEs may also receive these payments in regular instalments from the trustee to pay to you.

Prior to paying your student fees, you will be provided with a payment schedule by your PTE to sign. The payment schedule contains dates and amounts of payments. Signing this schedule is your confirmation of the amount paid to the trustee/PTE, and this is the amount that will be protected.

What happens if I withdraw from a course?

If your course is more than 3 months long and you withdraw before 9 days after your course starts you should inform the trustee and the PTE of your withdrawal as soon as possible. The trustee will then refund you (or your student loan provider) the balance of your student fees, less the PTE's administration cost of $500 or 10% of your total student fees (whichever is less).

If your course is more than 3 months long and you withdraw on or after the 9th day after your course starts you should inform your PTE and the trustee of your withdrawal as soon as possible. Whether you will get a refund depends on the withdrawal and refund policy of the PTE you are studying at.

If you are an International student and your course is less than 3 months then the period (the trial period) that you can withdraw from the course, and still get a refund, changes. If the course is up to 5 weeks, then you are allowed up to 2 days to withdraw and get a refund. If the course is between 5 and 13 weeks, you are allowed up to 5 days to withdraw and get a refund. You should inform the PTE and the trustee of your withdrawal and the trustee will refund you in accordance with the NZQA withdrawal policy, which is attached.

If you withdraw after the "trial" period, then whether you get a refund deposit depends on the withdrawal and refund policy of the PTE you are studying at.

What happens if my course closes?

If the PTE is no longer delivering or capable of delivering course, you are entitled to receive a refund of the balance of your student fees held by the trustee, which have not already been paid to the PTE. However, if you are a domestic student and you have a student loan, the loan provider will be paid the appropriate portion of your student fees.

If you transfer to another course provider then the trustee will transfer your student fees to another course provider's student fee protection arrangement.

Where can I obtain a copy of the Trust Deed?

You can obtain a copy of a signed trust deed from the trustee or your PTE or you can view the standard trust deed here: Word PDF

What other resources are available?

• Student fee protection policy - a summary in English or Chinese
• Contact for complaints about a PTE - Complaints kit and form
• Withdrawal and refunds (PTEs)

Who do I contact if I need assistance?

If you have any questions or concerns about any aspect of your student fees you should talk with your PTE first. If these concerns remain unresolved, then you should contact NZQA.

Page updated: 07 August 2007