The Government is urging school-leavers to seek higher education, rather than heading straight into work.

This comes after reports showed that, out of the $47,000 students accessed fees-free education, a third dropped out or failed. 

The fees-free scheme has come in at nearly $200 million under budget after a drop in tertiary enrolments.   

Education minister Chris Hipkins told Mike Hosking says value of the programme will emerge over time.

"I think certainly in terms of the lower levels of debt, its been successful. In terms of participation, I think its too early to tell." 

He says that job opportunities may to be blame for the low uptake.

"We've got a very strong labour market at the moment so the incentives for young people to go directly from school into employment are quite high at the moment when they can get work relatively easily." 

 

 

 

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