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As student protesters descended on Parliament this afternoon the Government said it might increase allowances in the next budget.
Tertiary students marched through central Wellington this afternoon to highlight issues and results of a study that found the average student debt was nearly $30,000.
About 100 protesters, including four furry debt monsters sweating in the heat, gathered in front of Parliament buildings chanting slogans such as: "Do a degree and what do you get? Debt, debt debt" and "Bring Back Bucks".
Political parties jockeyed to say what they would do for the students.
Earlier in the day Tertiary Education Minister Pete Hodgson, who also spoke at the students national conference held in Wellington today, said the Government would consider increasing allowances in the next budget.
While criticising banks for targeting students he said the student allowance plus the accommodation allowance had not shifted for many years "and needs to".
There "might" be an increase in allowances in this year's budget, Mr Hodgson told Radio New Zealand.
"Allowances haven't shifted in many years and they need to."
This would happen over a "number of years".
The average student allowance paid out was a bit more than $140 a week.
Fronting in the afternoon Associate Tertiary Education Minister Maryan Street said Labour would listen to the students and welcomed their research but they did not appear impressed.
United Future leader Peter Dunne and Green MP Metiria Turei got more positive receptions - both said as part of their party's confidence and supply agreements with the government they expected to achieve wider access to allowances.
Both parties want universal allowances restored but United Future said it would take time.
"A starting point might be to increase availability of the accommodation supplement," Mr Dunne said.
He said as Revenue Minister he would introduce some technical adjustments to the student loan scheme and extend entitlements to interest-free loans for students enrolled with New Zealand providers who were studying overseas as part of an exchange programme.
Mrs Turei said the Government agreed as part of their agreement to raise parental income thresholds.
"If the Government simply raises the top threshold, so that more students are entitled to $20 a week, it will be a failure to meet our agreement and a gross insult to students," she said.
Mrs Turei said students had to borrow in order to survive and enrolments from poorer students were down from 15 per cent in 2004 to 6 per cent in 2007.
She said students loans were a "failed experiment" and older students and groups like Maori were facing more and more barriers.
National MP Paul Hutchison told the crowd National would consider the debt research carefully. He said National wanted an equitable, fair and accessible education system but did not say it would change allowances or loans.
One student called out "education not tax cuts".
The New Zealand Union of Students Association (NZUSA) co-president Paul Falloon said research by TNS Conversa revealed average student debt had risen by 54 per cent since 2004 and was now $28,838.
The research also found students were looking beyond the student loan scheme, to bank loans, overdrafts, and credit cards to pay for essential living costs and 88 per cent of students considered student loans would impact on their ability to buy a house.
"For the majority of students, living expenses now far outweigh their income levels and they are forced to borrow to live," Mr Falloon said.
The drivers of student debt included continual increases in tuition fees and basic costs of living.
For example, average accommodation costs had increased from $116 to $142 a week in the last three years, he said.
Student debt included student loans, bank overdrafts, personal bank loans, loans from parents and family, credit card and other loans such as hire purchase, but excluded mortgages.
- NZPA
