Tougher University Entrance requirements means people are being more realistic about further education.

A Ministry of Education study has found that 70.2 per cent of students who passed the UE requirements in 2014, passed at least 85 per cent of their papers in their first year at university.

This was up from 68.2 per cent in the last cohort before the exam was tightened.

Universities New Zealand Director Chris Whelan told Mike Hosking now people have a better understanding of their ability to fit into the educational requirements.

"You're obviously providing an education to young people and you don't want to mislead them or suck them in and say, 'Hey you can get a degree', when they can't."

LISTEN ABOVE AS CHRIS WHELAN SPEAKS WITH MIKE HOSKING