Students receiving a scholarship provided for in yesterday's $8.5 billion education budget will be bonded to stay in New Zealand.
However, they will be able to leave the country by paying it back or transferring debt to a student loan.
The move is part of a new drive to bond students to stay in the country and slow down the "brain drain".
New early childhood teacher trainee scholarships announced last week required teachers to teach in New Zealand, matching the time they received a scholarship for.
Education Minister Trevor Mallard said the 500 new scholarships of $3000 (inflation adjusted) per each year of study would be awarded to students who perform well in their first year of study.
"These are an additional set of scholarships for kids who actually perform in their first year," he told reporters.
"These will be the creme de la creme of our academic kids, people who we want to retain, and the fact that it's bonded afterwards will mean that we are more likely to hold them for a bit longer."
The scholarships were part of $57 million – over four years – announced to improve tertiary student support.
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Personally, I think it is a great idea. If they want free money, they will be required to remain here and give something back to the country.