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Eligible students can now apply for funds to help with the cost of their final year of study.
But one economist is asking whether it's the best use of the money.
People who are studying for the first time can now access up to $12,000 for their final year of study or final two years of work-based learning.
The fees-free scheme changed from funding the first year to the final year from 1 January last year.
Payments are only available once the year is complete, so the first students are eligible under the new criteria this year.
Inland Revenue said the final-year fees-free programme was designed to
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