Increases to fulltime student allowances will mean payments top what many can earn on the dole each week.
Chris Liddell, the Kiwi businessman in Donald Trump's team, has donated $450,000 to the University of Auckland to fund a scholarship to Oxford.
The sale of Victoria University's Karori campus has become embroiled in controversy.
The government confirmed this week that it will boost financial support for tertiary students and is on track to deliver fees-free courses from next year.
Poorly considered public policy usually has damaging logical consequences. Labour's free tertiary education policy may have brought it votes at this year's election but the consequences are just becoming apparent.
Tertiary student numbers could be set to rise, with new student benefits set to kick in from next year.
A decision to bar some Australians from free study in New Zealand could be detrimental to the economy.
More than 130,000 students will have $50 extra in their pockets next year, as the Government moves to make tertiary education more affordable.