Student loan bill to top $4b this year

Student loan debt is forecast to top $4 billion this year.

The three Government departments that run the loan scheme expect total debt to rise about 16 per cent from $3.5 billion last year.

The debt is forecast to grow to $15.5 billion by 2015, and is described in the joint annual report from the departments as a "significant Government asset."

At the end of June, 274,891 student borrowers had debts with Inland Revenue, ranging from less than $6000 to more than $60,000.

New Zealand University Students' Association co-president Andrew Campbell said the figures showed the loan scheme was a huge liability for the country.

"There are going to be thousands of students who are crippled with a lifetime of debt."

He said fundamental changes to tertiary funding were needed.

- NZPA