Fee Protect for training providers
Public Trust offers the following Fee Protect trust solutions. . .
- Standard Trust – which can be used to protect fees for the whole course or for the statutory refund period
- Milestone Trust – a variation of a standard trust for condition dependent courses
- Static Trust – where a lump sum of money is set aside to cover student fees
- Bank Bond Trust – where you use your assets to cover your student fee obligations.
These are all approved Mechanisms under the current New Zealand Qualification Authority (NZQA) Student Fee Protection Rules.
Most training providers use a Standard Trust, where each student's fees are paid into an individual student trust account. We hold the fees in trust and pay them to providers over the duration of the student's course, according to an agreed payment schedule.
Where delivery of tuition can be affected by weather conditions, providers can use the Milestone Trust option. This variation of a Standard Trust releases payments from individual student trust accounts as sections of the course (milestones) are completed.
Public Trust has a unique, web-based Fee Protect system for training providers to use to administer their Standard Trust. Providers have full access to the system to view, add or update student records, and check payments at any time.
- The system automatically calculates and makes direct payment of fees to the provider's designated bank account, as they are earned.
- The Fee Protect system can dynamically share data with leading student management software applications, TAKE2, ENROLpro and Artena.
- Public Trust provides training on the Fee Protect system, and customer support is available by phoning 0800 494 733 or from client service managers.
Static Trust and Bank Bond Trust
Under a Static Trust or Bank Bond Trust, a lump sum or bank bond is held in trust by Public Trust to cover all expected student fees. This type of trust may suit a training provider whose student numbers are steady year round.
It may be used with a Standard Trust to protect fees for the statutory refund period. The Standard Trust may also be used to manage accommodation, living and insurances expenses.
The amount of cover (maximum liability) is recalculated each quarter, with supporting student details and the lump sum adjusted if necessary. For a bank bond, a significant freehold asset is required as a guarantee.