KEY POINTS:
The Government has promised a windfall for tertiary students in this year's Budget after a survey commissioned by the University Students' Association found students owed nearly $30,000 on average.
The NZUSA released a TNS Conversa survey yesterday which showed students now owed an average of $28,838 - a
54 per cent increase on the average debt in 2004. It was a combination of student loans and other forms of loan such as bank overdrafts, credit cards and hire purchases.
Minister of Tertiary Education Pete Hodgson promised yesterday student living costs would feature in the Budget and said it was likely to include increases to student allowance and loan entitlements and widening eligibility.
He said the average allowance was more than $140 a week for full-time students and students could borrow up to $150 a week for living costs.
While the average student loan was $16,800, the NZUSA research showed students were also racking up debt on credit cards and bank loans.
"While some is because banks are keen to loan money to students, it's also an indication that maybe $150 in living allowance limit is too low. Allowances haven't shifted in many years and they need to."
However, students should not expect an instant major cash injection - Mr Hodgson said any increases would be gradual to reflect the increasing cost of living.
However, co-president of the Students' Association Paul Falloon said he was sceptical about Mr Hodgson's claims.
"I'll believe it when I see it. I don't think any move will be enough. The amount the debt has risen is an indication of how abysmal the system is."
He said the average rent was $142 a week, meaning students had to borrow and take part-time jobs to cover their basic living expenses.
Mr Falloon led about 100 students in protest to Parliament yesterday calling for a universal living allowance for students.
The students were met by Labour's Associate Tertiary Education Minister, Maryan Street, the Green MP Metiria Turei, National's tertiary spokesman Paul Hutchison, and United Future's Peter Dunne.
WHAT STUDENTS GET
* On average, students getting allowances get $6300 a year - about $150 a week for the academic year. Students under 25 get $5600 on average, while a single student with a child gets $9600. A student whose spouse works gets $2600.
* Under current rules, students under 25 qualify for a student allowance if their parents earn less than $58,000 if the student lives at home or $63,000 if away from home.
* Allowances are reduced if a student earns more than $180 a week in part-time work.
* The number of students getting an allowance has dropped from 70,200 in 2001 to 59,400 in 2006, partly because of the parental income threshold.
* Allowances cost the Government $382 million last year, compared with the $1.1 billion for student loans.
* The average student loan debt when students leave is $16,800.