Student Allowance
Updated 2026 MSD rates. Student Allowance is a weekly payment from StudyLink (part of MSD) to help with living costs while you study full-time at a tertiary institution in New Zealand. It is not a loan — you do not have to pay it back.
Who Can Get It
To qualify for Student Allowance, you must:
- Be a New Zealand citizen (or permanent resident who has lived in NZ for at least 3 years).
- Be studying full-time at an approved tertiary provider (university, polytechnic, wānanga, or private training establishment).
- Meet the age and income criteria (under 65, and your personal or parental income must be under the threshold).
- Not be getting another main benefit (except in limited circumstances).
Weekly Rates (2026)
| Situation | Living Costs (weekly, net) | Accommodation Benefit (max) |
|---|---|---|
| Single under 24, living at home | $286.35 | Up to $60.00 |
| Single under 24, away from home | $333.38 | Up to $80.00 (Area 1), varies |
| Single 24+, away from home | $380.43 | Up to $80.00 (Area 1), varies |
| Single student with dependent children | $535.97 | Up to $80.00 per week |
| Partnered (both students, each) | $333.38 | N/A (accommodation based on couple) |
Accommodation Benefit
Students who pay rent, board, or a mortgage can apply for the Accommodation Benefit on top of their Student Allowance living costs. The maximum depends on your area and living situation:
- Area 1 (Central Auckland, inner Wellington, Queenstown): Up to $80/week for single students away from home.
- Area 2 (Rest of Auckland, Wellington, main cities): Up to $60/week.
- Area 3 & 4 (Smaller towns, rural): Up to $40/week.
You cannot get both the Student Allowance Accommodation Benefit and the Work and Income Accommodation Supplement at the same time.
Parental Income Test
If you are under 24 and do not have dependent children, your parents' income is taken into account. If their combined income is over the threshold, your Student Allowance may be reduced or you may not qualify.
- Threshold: Combined parental income under $119,096 gross per year for a single student living away from home.
- Abatement rates apply above the threshold.
Students aged 24 and over are assessed on their own income only (no parental income test). Rates above are the maximums from 1 April 2026 (after tax at the M tax code); your actual rate depends on your own or your parents' income.
How to Apply
- Apply through MyStudyLink (online or phone).
- Provide your personal details and proof of enrolment.
- If under 24, provide parental income details.
- Applications open several months before the study year begins.
Student Loan Living Costs
If you do not qualify for Student Allowance (or want extra support), you can apply for Student Loan Living Costs — up to $264.96 per week. Unlike Student Allowance, this is a loan that must be repaid.
How the Parental Income Test Works
If you are under 24 and have no dependent children, your parents' income is assessed alongside your own. The test is not a simple cutoff — the allowance reduces progressively as parental income rises above the threshold, and the threshold itself is higher for students living away from home (about $119,096 gross per year for 2026, adjusted annually). Students who cannot rely on their parents (for example, where there is a breakdown in the relationship) can apply for an Independent Circumstances Allowance, which removes the parental test — but it requires evidence and a case manager interview.
From 1 April 2026 the maximum living costs rates increased by roughly 3.1%: single students under 24 away from home now receive up to $333.38 per week (net), and those 24+ away from home up to $380.43. Students with dependent children can receive up to $535.97 per week.
Allowance vs Loan Living Costs
- Student Allowance is a grant — it does not need to be repaid. Apply first, because any allowance you receive reduces your Student Loan living costs dollar-for-dollar.
- Student Loan Living Costs (about $265/week in 2026) fill the gap if you do not qualify for the allowance or want extra support — but it is a loan that accrues interest once you leave study (a 0% interest rate applies while studying).
- Accommodation Benefit (up to $80/week in Area 1) is paid on top of living costs for students paying rent, board, or a mortgage — but you cannot receive both it and the Work and Income Accommodation Supplement.
Application Tips
- Apply through MyStudyLink as early as possible — applications open months before the study year, and backdating is limited.
- Have your proof of enrolment and (if under 24) your parents' income details ready before you start.
- If you are in a difficult family situation, ask about the Independent Circumstances Allowance.
- Recheck your entitlement each year — rates and parental thresholds are adjusted every 1 April.
Deep dive — 2026 update
The 2026 Student Allowance rates, in full
| Situation | Net weekly | Before tax |
|---|---|---|
| Single under 24, living with a parent | $286.35 | $321.64 |
| Single under 24, not living with a parent | $333.38 | $378.64 |
| Single 24+, living with a parent | $323.98 | $367.25 |
| Single 24+, not living with a parent | $380.43 | $435.67 |
| Single with children | $535.97 | $624.21 |
| Independent Circumstances Allowance | $333.38 | $378.64 |
| Student Loan living costs (borrowed, not granted) | $333.48 maximum | — |
These are maximums — the allowance reduces against your own income and, under 24, your parents' income.
The parental income test under 24
If you are under 24 and do not qualify as independent, your parents' combined income is tested. The allowance reduces as parental income rises above the threshold and cuts out at a level that changes each year.
- Exceptional circumstances — a parent unable to support you, or a breakdown in the relationship — can override the parental income test. Apply separately with supporting documents, often from a third party such as a school counsellor or social worker.
Allowance, loan and part-time work compared
| Source | Amount | Repayable? | Income tested? |
|---|---|---|---|
| Student Allowance | Up to $380.43 a week (single 24+ away from home) | No | Yes — you, and parents if under 24 |
| Student Loan living costs | Up to $333.48 a week | Yes, with interest if you go overseas | No |
| Part-time work | Unlimited hours | No | Reduces the allowance dollar-for-dollar above the threshold |
| Accommodation Benefit | Extra payment for high rent | No | Yes, separately tested |
Taking the allowance and borrowing living costs is not possible — they are alternatives for the same weeks. The practical rule: if you qualify for the allowance, take it, because a grant beats a loan. If you do not, borrow the living costs but treat them as a loan with a real repayment cost: $333.48 a week for a 40-week year adds $13,339 to your balance.
Applying without delays
- Apply through StudyLink as soon as you enrol — applications open months before the semester starts, and payments can backdate only to the week you applied.
- Provide your parents' income details at the same time if you are under 24 — incomplete applications are the main cause of payment gaps.
- Update your address details — moving from "living with a parent" to "not living with a parent" is worth $47.03 a week under 24.
- Reapply every year: the allowance is not automatic and the parental income test uses the most recent complete tax year.