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Failing students risk being kicked out as universities try to make space for "motivated students".
Massey University Vice-Chancellor Steve Maharey told the Dominion Post increasing financial stress meant universities had no choice but to show poor-performing students the door.
"We will be excluding students who underperform," Maharey said.
"There will be a significant number, there's no doubt about that. We want to create space for motivated students."
The university would also crack down on prospective students, he said.
"We have thousands who want to come here, but we will be carefully sifting through the applications and some tough calls will be made. We will be very careful about who we let come here. I expect all universities will be in the same position."
Canterbury University has also come down hard on students with poor marks, excluding 827 students last year compared with 203 in 2008.
The exclusions follow a new university policy in which any student whose grade point average was less than 1.5, or who had not passed at least half of their courses, would have their progress automatically reviewed. Grade point averages are ranked up to nine.
Union of Students Associations' co-president David Do said student groups had already seen an increase in exclusions for poor academic performance, and that there was concern that toughening up admission requirements went against New Zealanders' sense of fairness
"Open entry is a very important feature of the education system. It's a cornerstone of our public tertiary education system."
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