It is awarded by assessing candidates against challenging standards through an examination or, in the case of some subjects, submission of a portfolio and/or report.
It is highly competitive as only 3% of the number of students studying a subject at NCEA Level 3 are able to achieve a passing grade on the scholarship assessment.
NZEST stopped its examinations and now provides financial assistance for students studying at NZ universities.
The 2004 examinations, in line with the NCEA, were criterion-referenced and produced some unexpected results distributions.
Scholarships in 2005 were awarded to the top three per cent of NCEA Level 3 candidates in the subject, given that examiners are satisfied a worthy standard has been met.
The number of passing grades awarded in each scholarship subject is set at approximately 3% of the size of the Level 3 Cohort.
[6][7] A common misconception is that passing grades are only awarded to 3% of the students who sit the scholarship assessment, rather than 3% of the total Level 3 cohort.