In a referendum held by the Otago University Students’ Association (OUSA) this week, 61% of voters, or 589 people, said the OUSA should express an opinion of no confidence in Education Minister Chris Hipkins because of the unfulfilled promise.
Allowing postgraduate students to receive a student allowance was one of the Labour government’s campaign promises in 2017.
Unlike living cost loans, students are not expected to pay back student allowances.
A postgraduate student who did not wish to be named said it was "abhorrent" students were expected to go into debt in order to meet living costs.
Those studying should have access to a basic wage, the student said.
"The idea that [postgraduate] students should not be allowed access to allowances indicates that the government is not interested in developing the skills of their future labour force — then they bemoan the resultant braindrain."
Postgraduate student Rinah, who did not want to give her last name, thought it was unfair that studying at a higher level shut the door to student allowances.
"When I first started my postgrad, it was so hard to find income," she said.
Financial grants, while appreciated, often fell short of the mark, and juggling study with work was difficult.
She was studying part-time, but planned to move to fulltime next year.
After a day at work, her motivation to study was low and it was hard to find the energy to concentrate, she said.
Minister Hipkins said the Government was not in a position to reintroduce post graduate allowances, removed under the earlier National government.
However, it put "a high value" on tertiary education, spending about $4billion a year.
He pointed to changes the government had made to support students, such as increasing the weekly student loan living cost and student allowances rates by $25 this year, on top of a 5.95% adjustment for inflation.
OUSA administrative vice-president Maya Polaschek said the next step following the referendum result had yet to be discussed.