31 May 2000
For immediate release
Largest Student Debt More Than $130,000
According to figures released under the Official Information Act, there are people that have student loan debts so big
that they would need to pay the Government around $30,000 just to do their OE.
The Aotearoa Post-compulsory Student Union (APSU) has been informed by the Minister of Finance that one unfortunate
student loan debtor owes the Government between $130,000 and $140,000.
"APSU has worked out that the ransom that this debtor would have to pay the Government if he/she wanted to travel, and
not default on their loan, would be between $28,000 and $30,000 a year,"
Non-resident student loan debtors must pay the Government 1/15th of their total loan debt and any interest charged for
that year.
"This anonymous debtor is basically trapped in New Zealand, or has very strong incentives to leave the country and
never return."
"We are calling on the Government to halt the debt spiral by stabilising fees and introducing universal student
allowances," said David Penney, APSU National President.
"The fact that student debt will at some stage this year reach $4 billion dollars is a horrifying thought."
"The implications for the individual and the country are huge."
"We hope that all New Zealanders, not just students, will take the opportunity to express their concerns about student
debt to the recently announced Parliamentary Select Committee Inquiry into tertiary education, and ensure that tertiary
education remains accessible to all," concluded David Penney.
ENDS
For more information contact:
David Penney
National President
APSU
025 756 526
04 4982501