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Applying for exception to fee limit on micro-credentials

Applying for exception to fee limit on micro-credentials

Last updated 1 December 2020
Last updated 1 December 2020

The Tertiary Education Commission (TEC) has opened the 2021 micro-credential fee limit exception process and the application form is now available.

In September, Minister of Education Hon Chris Hipkins announced the 2021 fee regulation settings for micro-credentials. Micro-credentials are short study awards that are distinct from qualifications. They certify achievement of a coherent set of skills and knowledge and have evidence of need by industry, employers, iwi and/or the community.

The Minister has set a $60 (GST inclusive) per credit limit on all micro-credentials that receive TEC funding through the Student Achievement Component (SAC) level 3 and above fund. These new settings will come into effect on 1 January 2021 and include both new and existing micro-credentials.

The new settings also give the TEC discretion to manage a fee limit exception process so that tertiary providers can seek an exception to the $60 per credit limit.

A new application form is available for TEOs that wish to apply and seek an exception to the fee limit.

New micro-credential application form

What we will look for in your application form

When we assess your application, we will look for evidence of:

  • Higher actual and reasonable costs
    Applicants need to demonstrate that the total funding and fee revenue for the micro-credential, compared with the costs to deliver the micro-credential, make it financially unsustainable to offer it. There must also be no satisfactory alternatives to limit the costs. Applicants need to provide evidence about the relative cost to deliver the micro-credential to other micro-credentials, courses or programmes.
  • Strong industry need
    Applicants must provide evidence that there is strong support from industry and/or employers to deliver the micro-credential and that it clearly meets industry and/or employer needs, despite the rate of the fee.

The application process is available to all SAC 3+ funded TEOs

All SAC level 3+ funded TEOs who are delivering micro-credentials can apply for exception to the fee limit. The fee regulation rules do not apply to SAC level 1 and 2 and the Industry Training Fund funded micro-credentials.

We will assess applications and communicate the outcome in writing to applicants. We have discretion to determine how much a provider can set fees for any micro-credentials granted an exception to the limit. This means that if a micro-credential is granted an exception, it may not necessarily be approved at the full amount requested in the application.

You can download the application form on our micro-credential website page and send your application form and evidence to micro-credential@tec.govt.nz.

For any questions about this please contact your Relationship Manager or customerservice@tec.govt.nz.