To counter that, the polytechnic would introduce a more stringent selection process for first-year students to ensure funded places went to those serious about study who had a strong chance of succeeding, chief executive Phil Ker said yesterday.
First-year students with strong academic records applying for high-level diploma or degree programmes were "very likely" to be accepted ahead of those who met only minimum requirements, he said in a report to be discussed at today's polytechnic council meeting.
The enrolment management strategy endorsed by the leadership team involved more applicants being interviewed pre-enrolment to gauge their suitability for study and their chances of success, as well as a tougher line on under-performing students.
A non-refundable deposit payable after students had accepted a place was also being proposed to penalise students who waited until the last minute to pull out.
The message for prospective students was clear, Mr Ker said in the report.
"We will not allow a place to be taken up by someone who is not taking their study seriously where others are on the waiting list for entry. Taking this harder line is also good for students, who will not be allowed to run up debt needlessly or to use up their lifetime access to tertiary education."
Under changes introduced in the May Budget, undergraduate students are only eligible for student loans or allowances for seven years in their lifetime.
The Tertiary Education Commission negotiates with tertiary institutions annually and funds an agreed number of places for domestic students - New Zealand-born students, New Zealand citizens and some overseas students whose countries have reciprocal agreements with New Zealand.
Otago Polytechnic had about 3200 funded places this year and was hoping for at least the same, if not more, next year, Mr Ker said when contacted.
While the polytechnic's final number of places had not been finalised, it was apparent it would not be 3200, he said.
That was "disappointing", he said, as Otago had done what the Government had prioritised in its tertiary education strategy and increased the number of students enrolling in diploma and degree qualifications.
It had also exceeded national averages for student performance measures, such as retention and course completion.
Students already enrolled in multi-year courses would be assured of places next year, meaning it was first-year students who were more likely to miss out on places.
Many other tertiary institutions, including the University of Otago, are also tightening enrolment criteria next year or capping courses because of the TEC funding policy.
Institutions are also facing significant cuts in their core TEC funding from next year, as the Government moves to try to put a lid on the $2.5 billion it pours annually into tertiary providers.
Mr Ker said Otago Polytechnic had TEC approval to take up to 90 unfunded domestic students next year, but was unsure yet whether it could afford to carry them.
Otago Polytechnic expects to lose almost $3 million in base funding next year, which Mr Ker has already said will affect some programmes and lead to some redundancies.
There were no plans to close Otago's Cromwell campus or cut back on activities there, he said yesterday.
ENROLMENT CHANGES
• Most impact on first-year students.
• More stringent selection process based on past results and likelihood of success.
• End of "first-come, first-served" process for most certificate courses.
• Preferential pathway for those completing lower qualifications.
• Stricter adherence to enrolment closing dates.
• Possible introduction of non-refundable deposit.
• "Enforced withdrawal" for missing classes, not participating or failing 50% of assignments.
