NZQA Assessment Support Material
Unit standard
28093
Title
Describe the future financial responsibilities of utilising tertiary study funding
options
Level
2
Credits
Version
3
2
Note
The following guidelines are supplied to enable assessors to carry out valid and consistent
assessment using this internal assessment resource.
Assessors must manage authenticity for any assessment from a public source, because
students may have access to the assessment schedule or student exemplar material. Use of
this assessment resource without modification may mean that students’ work is not authentic.
The assessor will need to change figures, measurements or data sources or set a different
context or topic.
While this resource exemplifies written assessment, there are other assessment activities and
approaches that could be taken.
See Generic Resources and Guidelines at http://www.nzqa.govt.nz/providerspartners/assessment-and-moderation/assessment-of-standards/generic-resources/.
Assessor guidelines
Assessors need to be very familiar with the outcome being assessed by the unit standard. The
evidence requirements and the explanatory notes contain information, definitions, and
requirements that are crucial when interpreting the standard and assessing learners against it.
Over the weeks prior to this assessment, learners should have had sufficient teaching and learning
opportunities to be familiar with the following:
 Student loans and other possible funding options for tertiary education study
 Potential consequences of funding options on the financial responsibilities and choices for
individuals in the short and long term.
28093 version 2
Assessor guidelines
ASM version 1
June 2015
Page 1 of 13
 New Zealand Qualifications Authority 2017
AWAR D O F G R AD E S

For award with Achieved, learners must: describe and compare a
student loan and one other tertiary study funding options in terms of their
key factors (criteria for eligibility, components of tertiary study costs,
advantages, disadvantages); describe and compare potential
consequences of the funding options in terms of their financial
responsibilities and choices (short and long term).

For award with Merit, learners must: provide a detailed comparison of
the two funding options and make links to the financial responsibilities,
potential consequences and implications for future choices.

For award with Excellence, learners must: provide a comprehensive
comparison of the funding options and a justification of the suitability of
the two funding options for their financial responsibilities and choices.
CONDITIONS OF ASSESSMENT
The assessment is an open book activity that will take place over a
timeframe set by the assessor. Learners can use any information to help
them complete the tasks. Answers must be in their own words.
Assessment activity
This assessment activity has one task.
The learner is required to describe two tertiary study funding options for their own personal
situation. One of these must be a student loan. Assessors should check that the ‘other’ study
funding option is realistic and appropriate to the learner’s situation.
The task involves:




Describing and comparing a student loan and one other tertiary study funding option in
terms of their key factors (criteria for eligibility, components of tertiary study costs,
advantages, disadvantages) for their personal situation.
Describing and comparing the potential consequences for the two options on their financial
responsibilities and choices in the short and long term.
Making links to the financial responsibilities and implications for future choices for the two
funding options.
Justifying the suitability of the two options for their own financial responsibilities and
choices.
28093 version 2
Assessor guidelines
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June 2015
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Resource requirements
Resources that may help with this are:
 Commission for Financial Capability, http://www.cffc.org.nz/;
 Inland Revenue Te tare Taake, http://www.ird.govt.nz/studentloans;
 Sorted Your independent money guide, https://www.sorted.org.nz/;
 Work and Income Te Hinanga Tangata, http://www.workandincome.govt.nz/;
 StudyLink Hoto Akoranga, http://www.studylink.govt.nz/;
 Breakout, http://www.fis.org.nz/databases/BreakOut.php;
 Bamzonia Personal Financial Education, http://www.bamzonia.co.nz.
28093 version 2
Assessor guidelines
Page 3 of 13
June 2015
 New Zealand Qualifications Authority 2017
Assessment Schedule
Unit standard
28093
Title
Describe the future financial responsibilities of utilising tertiary study funding options
Level
2
Task
ER 1.1
Question
1
ER 1.1
Question
2
Credits
3
Version
2
Evidence/Judgements for achievement
Evidence/Judgements for achievement
with merit
Evidence/Judgements for achievement
with excellence
A student loan and one other tertiary study
funding option are described in terms of
their key factors (criteria for eligibility,
components of tertiary study costs,
advantages, disadvantages).
A student loan and one other tertiary study
funding option are described in terms of
their key factors (criteria for eligibility,
components of tertiary study costs,
advantages, disadvantages).
A student loan and one other tertiary study
funding option are described in terms of
their key factors (criteria for eligibility,
components of tertiary study costs,
advantages, disadvantages).
See sample answers for question 1
See sample answers for question 1
See sample answers for question 1
A student loan and one other tertiary study
funding option are compared in terms of
their key factors.
The description includes a detailed
comparison of the two funding options.
The description includes a comprehensive
comparison of the two funding options.
See sample answers for question 2
See sample answers for question 2
See sample answers for question 2
28093 version 2
Assessor guidelines
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June 2015
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Task
ER 1.2
Questions
3,4,5,6
Evidence/Judgements for achievement
Evidence/Judgements for achievement
with merit
Evidence/Judgements for achievement
with excellence
Potential consequences of the two funding
options are described and compared in
terms of their financial responsibilities and
choices (short and long term).
Potential consequences of the two funding
options are described and compared in
terms of their financial responsibilities and
choices (short and long term).
Potential consequences of the two funding
options are described and compared in
terms of their financial responsibilities and
choices (short and long term).
See sample answers for questions 3
and 4
See sample answers for questions 3
and 4
See sample answers for questions 3
and 4
The description makes links to the financial
responsibilities, potential consequences
and implications for future choices for each
option.
The description makes links to the financial
responsibilities, potential consequences
and implications for future choices for each
option.
See sample answer for question 5
See sample answer for question 5
The description includes a justification of
the suitability of the two funding options for
their financial responsibilities and choices.
See sample answer for question 6
Final grades will be decided using professional judgement based on a holistic examination of the evidence provided against the criteria in the unit
standard.
28093 version 2
Assessor guidelines
Page 5 of 13
June 2015
 New Zealand Qualifications Authority 2017
Task 1
1.
Use the following table to describe a student loan and one other tertiary study funding
option for your own situation/circumstances. Check with your assessor that your other
option is realistic and appropriate to your situation.
Key
Factors
Criteria for
eligibility
Option 1:
Student loan
O p t i o n 2 : State here
[Family/whanau]
Outline of the eligibility criteria listed on the
No set criteria, but my parents
studylink website
have said I will need to commit to
http://www.studylink.govt.nz/financing-
my study.
study/student-loan/index.html.
Components of
tertiary funding
costs
Description of what’s in a student loan as
My parents will loan me money to
per http://www.studylink.govt.nz/financing-
pay compulsory fees, course
study/student-loan/
related costs + daily transport
Compulsory fees; living costs; limits.
costs. They will also cover my
accommodation costs if I am living
at home.
Advantages
There is a formal contract in case anything
My parents are willing to lend me
goes wrong.
the money on a as need basis so
that I don’t have to borrow
Under certain circumstances, the loan may
everything at once. They have
be interest-free as
promised that their interest rate
perhttp://www.studylink.govt.nz/financing-
will be lower than the student loan
study/student-loan/student-loan-account-
rate.
and-balance.html.
There will be less paper work and
I don’t have to sign up every year.
Parents may offer incentives.
28093 version 2
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Disadvantages
There are obligations and consequences if
There will be some conditions
I don’t pay the loan back.
attached to the loan such as some
http://www.studylink.govt.nz/financing-
chores at home, like babysitting
study/student-loan/student-loan-account-
my younger siblings and cooking
and-balance.html.
the family dinner at least once a
week.
I need to sign a Student Loan contract with
the Government for every year and each
If things go wrong at home and
time I start a new course.
my parents cut my funding/loan I
might need to find an alternative.
Because I will be under 18 years old one
of my parents must sign the contract
I will be tied to my parents for
each year of the time I am
borrowing from my parents.
I’ll have less freedom and I will
have to weigh up the potential
reduced borrowing and ability to
work part time.
(Sample answers related to awarding Achievement
28093 version 2
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June 2015
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2. Compare the two study funding options in terms of the key factors you described above.
There are criteria around the courses I can receive a student loan for, and it is a formal
agreement whereas my parents might not be as restricting. I might not need to borrow as
much money from my parents and it will be at a low interest rate, but there will be conditions. It
will also depend on me keeping a good relationship with my parents.
(Sample answers related to awarding Achievement)
Borrowing from my parents make it easier to change course or study part-time without it
affecting my loan.
There is a student loan establishment fee of $60 which my parents wouldn’t charge me.
(Additional sample answers related to awarding Merit)
My parents might write off interest or even loan at the end of the year if I pass everything. If I
take out a student loan it will have to be paid back no matter what, and if I don’t there will be
consequences.
(Additional sample answers related to awarding Excellence)
28093 version 2
Assessor guidelines
Page 8 of 13
June 2015
 New Zealand Qualifications Authority 2017
3. Describe the potential consequences of the two (2) funding
options in the short and long term on your future financial
responsibilities and choices.
What will you have
to pay back?
What will the effect
be on your personal
finances?
Short Term
Funding options
Consequences
Financial
responsibilities
Future choices
Option 1:
My debt will increase each
I will need to keep
In the short term, I will
Student Loan
year I am in tertiary study.
track of how much I
have the opportunity to
I will end up with a
have borrowed and
undertake my study
substantial student loan
make sure that I
without having to worry
balance.
comply will all student
about where the
loan legal
funding is coming
requirements and
from. It will give me
responsibilities.
the choice about
where I can study.
Option 2:
I may end up by borrowing I will need to keep
My parents may
Family/Whanau
a different amount from
careful track of what I
forgive my debt to
my family/whanau,
borrow.
them if I pass my
depending on my financial
papers each year. So
needs. This may be more
my future choices
or less than what is
about what I need to
available through the
pay back are reduced.
student loan scheme.
This will mean that my
Also I may not be able to
future income is not
take the course I want to
reduced by debt
as the chosen course may
repayments.
not be available in my
home town.
(Sample answers related to awarding Achievement
28093 version 2
Assessor guidelines
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June 2015
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Long Term
Funding options
Consequences
Financial
responsibilities
Future choices
Option 1:
I will have to pay the
I will need to make
If I pass all my papers,
Student Loan
loan and interest back
sure that I make the
I will still have to pay
if I don’t stay in New
repayments on time,
back the loan and
Zealand. If I stay, then
whether I am In NZ or
these repayments will
I may not have to pay
overseas.
reduce my spending
interest.
from income.
Option 2:
If I pass all my papers,
I have the
My future choices will
Family/Whanau
there is a possibility I
responsibility to pay
depend on my ability to
will have my debt
back my parents if I do
pass my papers.
forgiven and so I will
not pass, and I may
Passing the papers
have increased
feel obligated to do this means that I have
financial freedom to
faster than the student
more spending as I do
start my working life.
loan repayments, as
not have a loan. It
this money came from
also means that I can
my parents’ retirement
go overseas without
savings.
the loan repayment
obligation hanging
over me.
(Sample answers related to awarding Achievement)
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Assessor guidelines
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June 2015
 New Zealand Qualifications Authority 2017
4. How do the two options compare in terms of their potential consequences on your financial
responsibilities and implications for future choices in the short and long term?
Short Term
In the short term, my financial responsibilities will be to repay the loan. This is the same no
matter who I borrow from. The size of the loan in the two different situations would be different.
If I can work while I am at home, I may be able to borrow even less from my parents than I
would need compared with being away from home and needing to borrow the accommodation
allowance as well. Also with my parents I would not have to pay the IRD fees.
With a student loan, I need to ensure SL tax code used to ensure loan repayment transfer to
IRD by employer. Repayment of a student loan reduces take-home pay and may constrain
some lifestyle choices, such as saving, house purchase and higher consumer spending. May
get a job in one’s chosen vocation more quickly.
As well, I do have some control over whether or not I pass my papers and have my student
debt forgiven by my parents. Not having a loan, even in the short term, gives me greater future
choices. Even if I do have a loan from my parents, I know my debt is not mounting up as much
and so when I finish my studies, my future choices will be greater. I will have more spending
money from my income and greater flexibility about what I will do when I finish my qualification.
Long Term
In the long term, my options regarding going overseas are quite different under the two funding
arrangements. If I pass my papers, and borrow from my parents, I will have no financial
responsibilities and my future choices will be much wider. I will be able to go overseas without
any financial constraints. If I go overseas with a student loan not yet paid back, I will still have
financial responsibilities to IRD. With a student loan, I will need to make arrangements for loan
repayment if going overseas.
With a student loan still to be repaid, that situation may determine where I go and what sort of
job I may feel obliged to get. My future choices would certainly be different. Even if I do not
pass all my papers, my financial obligations to IRD may well be greater than if I had borrowed
from my parents. First of all, I would most likely have a smaller loan and I would not have so
much interest accruing. If I borrow from my parents, I would have no legal obligations to IRD
for my finances. I am sure that I could negotiate with my parents about the repayments.
(Sample answers related to awarding Achievement)
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June 2015
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5. Link the financial responsibilities and consequences for the two funding options by
explaining how they may have an effect on your future choices
Option 1: Student loan
With IRD and a student loan, there are rules and regulations, including interest requirements,
attached to the student loan contract if I go overseas before I have paid the loan back. The
total amount to repay is likely to be more with a student loan.
Option 2: Family/Whanau
The link for my future choices is the degree of freedom that I will have to travel and work. If I
borrow from my parents, I am sacrificing freedom in the short term for the prospect of gaining
freedom in the long term.
With borrowing from my parents, the interest payments would be lower and may be paid less
regularly.
(Sample answers related to awarding Merit)
6. Justify why each option is suitable (or not) for your financial responsibilities and future
choices.
Option 1: Student loan
A student loan would cover my tertiary funding needs but may limit my options in the long term.
I would always be in a position of having to pay the loan back no matter how well I did at my
studies. This would not be the case with borrowing from my parents. I am prepared to stay at
home as long as I can as having a substantial loan hanging over my head does not suit me. I
can also look forward to greater freedom when I qualify. I will also be able to keep my current
part time job and save more easily for going overseas.
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Option 2: Family/Whanau
I can readily justify borrowing from my parents. I will do everything I can to pass each year,
and if not pass everything, I will use my current part time job income to pay them back as soon
as possible during my time of study and also with my post qualification job. I intend to show my
parents I am serious about getting my qualification.
(Sample answers related to awarding Excellence)
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June 2015
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