Students' debt mountain grows

A just released survey shows student debt and fees have risen by more than a third in just three years.

The New Zealand University Students' Association (NZUSA) income and expenditure survey is carried out every three years and details the financial and socio-economic situation of students at polytechnics, colleges of education, and universities throughout New Zealand.

Findings released yesterday showed average student debt has risen by 36 per cent since 2001 and fees have risen by 34 per cent.

"With an election looming, the Government needs to commit to overhauling the appalling student loan scheme, reducing student fees and introducing a living allowance for all students," said NZUSA co-president Andrew Kirton.

The survey, carried out by TNS Research, has been conducted since the introduction of the student loan scheme in 1992.

NZUSA co-president Camilla Belich said it was the most comprehensive picture of the "destructive impact of ever-increasing levels of student debt".

Key findings include:

* Average overall student debt has risen 36 per cent since 2001 and is 60 per cent higher than in 1998.

* The average debt of all students (including student loan, bank overdraft, personal bank loan, credit card and loan from parents) is now $18,726.

* The proportion of students with higher debt ($15,000 or more) has increased while numbers with lower debt ($5000 or less) has decreased.

* The proportion of students with student loans has decreased significantly since 2001 but the average value of student loan balances has increased by more than $4000.

* Students are looking at alternatives to student loans with debt to parents over $10,000, on average, and increased numbers of loans from banks and overdrafts.

* 44 per cent of students consider student loans will impact on their ability to buy a house, 48 per cent on their ability to save for the future and 41 per cent on deciding when to go overseas.

* Fees have risen by 34 per cent since 2001, and the average cost of tuition fees for courses in 2004 was $5644.

Education Minister Trevor Mallard said the Government was working hard to make tertiary education more affordable.

- NZPA