Fee protection under the Code
Student fee protection is also a requirement under the Pastoral Care Code of Practice (the Code).
The Student Fee Protection Rules relate to PTEs, whereas the Code relates to all providers delivering to international students, such as:
- schools
- Te Pūkenga - New Zealand Institute of Skills and Technology
- wānanga
- universities
- as well as PTEs that enrol international students.
The requirements in the Student Fee Protection rules are more specific than in the Code.
PTEs with an approved student fee protection mechanism will have met the requirements of the Code.
More information about the Code
On this page
Agents' fees
Fee protection includes agents' fees. The amount that needs to be in trust is generally the amount you have receipted and advised to Immigration New Zealand.
This amount will be the greater of:
- the amount the student has paid you
- the amount the student paid to an agent (if the student paid through an agent)
- the recommended retail price for the programme or micro-credential.
The recommended retail price may be more than the amount the agent pays you. In that case, you should top up the amount you deposit into the trust account to ensure the recommended amount is in trust.
You can use a supplementary, second trust arrangement to do this.
You should tell the student the amount you are holding in trust for them.
Homestay and accommodation fees
You should also protect homestay fees using either a standard trust or a static trust. You cannot use a bank bond.
You can draw down fees to pay the homestay or accommodation provider up to one month in advance, with the student’s consent.
Where the student chooses not to remain in the accommodation, you can refund the fee directly to the student if they are over 18 years of age.
If you're using an accommodation company that your PTE owns or controls, you should protect those fees too.
Living expenses
If students pay you money for their living expenses, you should protect this money. You should use either a standard trust or a static trust. You cannot use a bank bond.
Living expenses can be released in full directly to the student or you can draw them down on behalf of the student in equal instalments depending on what the student requests.
All living expenses you receive from the trustee should be paid immediately to the student.