Students' average debt now $11,700

The average student loan debt including accumulated interest has nearly doubled in five years to $11,700, and 604 people owe more than $60,000.

About 70 per cent of fulltime tertiary students took out loans last year, according to the Ministry of Education Student Loan Report for 1999, which calls the scheme a success.

The report, released this week, said the number of fulltime tertiary students had nearly doubled in the past decade, although growth had slowed in recent years.

"In general the loan scheme appears to be successful in assisting students who are willing to make an investment in their education."

It said the Student Loan Scheme was a significant Government asset, with borrowers owing an estimated $3 billion, and that amount was expected to grow to $11 billion by 2015.

However, bankruptcies had cost the Government $4.4 million, a further $30 million in payments was overdue and $58 million in interest had been written off because debtors had been unable to afford it.

The average debt is expected to grow as students borrow more each year, especially in the face of rising tuition fees. The average amount borrowed last year was $5714, compared with $3628 in 1992.

Most (60 per cent) of borrowers owe less than $10,000 and 2.5 per cent (6225 people) owe more than $40,000.

Men borrow about $200 a year on average more than women, and Pacific Island students borrowed the most on average last year, $6298 each.

Nearly 50 per cent of all students, including part-timers, have loans.

Fulltime students borrow more - an average $6311 last year, compared with $2308 for part-time students - but figures on average debt for fulltime students are not available.

The interest rate at the moment is 7 per cent.