International student fees - specific issues

Agents' fees

Fee protection includes agents' fees. The amount of fees to be put in trust is generally the amount receipted by the PTE and advised to the New Zealand Immigration Service. This amount will be the greater of:

• the amount paid by the student to the PTE
• the amount paid by the student to an agent (if the student paid the PTE via an agent), or
• the recommended retail price for the course (as long as it is not less than the amount paid by the agent or student to the PTE).

The recommended retail price may be more than the amount paid by the agent to the PTE. In that case, the PTE must top up the amount deposited into the trust account to ensure the recommended amount is in trust. The student must be advised of the amount covered. A supplementary, second trust arrangement can be used for this purpose.

Homestay/accommodation fees

Homestay fees are also to be protected. Experience has shown that all money paid by students to a PTE is at risk in a course closure. Unless the PTE is also the accommodation provider, monies paid by the student to the PTE for safe-keeping and passing on to a third party should not be treated as part of the PTE's operating funds.

Where a PTE transfers homestay monies to an accommodation company owned or controlled by the PTE, these monies must also be protected. They must also be available to be drawn down no more than four-weekly in advance and paid immediately to the homestay/accommodation provider.

Living expenses

Living expenses are protected by the Student Fee Protection Policy (PDF, 2.1MB). Monies paid by the student to the PTE for living expenses should not be treated as part of the PTE's operating funds.

For every mechanism other than standard or static trusts, a separate trust account must be used to protect homestay fees and living expenses, as this money is never intended to be the PTE's.

Code of Practice for the Pastoral Care of International Students

Both NZQA's registration policies and criteria and the Code of Practice for the Pastoral care of International Students require protection of student fees. The NZQA requirement relates to PTEs, whereas the Code of Practice relates to all providers delivering to international students. Therefore, the code applies to schools, polytechnics and universities as well as PTEs. NZQA requirements are more specific than Code of Practice requirements. Under an agreement with the Code of Practice administrator, PTEs that deliver courses to international students can meet the code's requirements by obtaining NZQA approval.