Two university students talk about what it is like to work and study for survival.

It's a tale of two students.

One works 10 hours a week to be able to afford $50 a week on food and no heating.

The other, works about 30 hours, eats salmon, has the heating on all the time during winter, and is going to Malaysia on holiday.

The stark differences comes down to studying in Invercargill, or studying in Wellington, or anywhere else in the country.

In an effort to reduce the barriers to studying, the Government rolled out fee-free classes for first year tertiary students this year.

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But the Government has missed the mark, according to both students and tertiary institutions.

Student enrolments are dropping across the board, and the sector lost $50million in 2017. Unitec, the country's largest polytechnic, announced on Friday it is $31million in deficit, and student enrolments dropped by 660 this year.

But the fee-free scheme doesn't make life easier for students. It's all the other costs, like rent, that make a difference to the wallet.

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ROBERT KITCHIN/STUFF Victoria University student Raven Maeder, who receives the student allowance, works ten hours a week on top of full time study.

Victoria University student Raven Maeder received the student allowance and worked ten hours a week.

She dropped a course, because working limited her time to study.

"I felt really stressed out because I need to work at 9.30am every morning, and then I finish lectures at 6.30pm each night.

"That's like a full time job, and and in that time, I don't have much more [time] to do my readings and assignments."

JOHN HAWKINS/STUFF Southern Institute of Technology 3rd year Bachelor of Screen Arts student Daisy Thor-Poet believes studying in Invercargill means she has more money to spend on salmon.

Working affected her grades, she said.

Maeder receives $250 student allowance from the government, but pays $195 for rent and about $20 a week for bills.

She spends about $50 on food a week, and knew a lot of people who had gone vegetarian to save money.

In her flat they did not use heating.

Down south, Invercargill student Daisy Thor-Poet is chowing down omega threes in a serving of salmon.

The Southern Institute of Technology student reckons she has more money to spend, simply because she lives in Invercargill.

The 20-year-old, 3rd year Bachelor of Screen Arts student was drawn to the cheaper living costs and zero-fees scheme, but also the quality of the course.

Originally from Wanaka, Thor-Poet said the cheaper living costs for her and her partner Liam Bargh, meant they could enjoy life while studying.

Unlike their counterparts in the rest of the country.

The pair rent a two-bedroom flat for $190 a week, split between them, and share the cost of food, which was about $150 a week.

Since they both worked 30 to 35 hours a week as well, they often ate out or bought expensive food,, she said.

"We eat quite nicely and treat ourselves for being students."

She also had a holiday to Malaysia booked- and her student loan was only about $6000.

The major cost for living in Invercargill would be the power bill which had spiked from about $120 in summer to $250 a month at their last bill, Thor-Poet said.

However, the other low costs meant they could afford to keep the heating on and both saved on doctors trips because of their good diets, warm home and going to the gym, she said.

CRAIG SIMCOX/STUFF Studying and working at the same time affects grades, students say.

Education Minister Chris Hipkins said it was much harder to be a student compared to 10 years ago.

"Many are struggling to get by."

The government had thought carefully about what would ease the financial burden on students, Hipkins said.

In December it introduced fees free for the first year of study, and a $50 increase per week to student allowances. However in Wellington, the average rent rose $50 in 2018.

Auckland University Students Association president Anna Cusack said students working while studying was standard now.

"If you're not living at home, there's pretty much no way you can be paying your rent and buying food without having a job."