New Figures Show More Students Have Bigger Loans

23/7/2002

New Figures Show More Students Have Bigger Loans

“The policy changes of the last few years have failed to curb the growth in student loans,“ said Andrew Campbell, Co-President of the New Zealand University Students Association (NZUSA). The figures were released at the third annual student debt summit held today at the Auckland University of Technology and co-hosted by Youth Affairs Minister Laila Harré.

There has been a 3.1 % increase in student loans over $10,000 since March 2001, according to the latest quarterly report on the loans scheme recently posted to the IRD website.

“The trends are going upwards for average debt and total debt, and will continue to do so until government attacks the drivers of debt, especially lack of access to student allowances,” said Campbell. “A few days from a general election, this is further evidence that tinkering on the edges of the scheme has failed to avert a student debt crisis.”

The latest quarterly report shows that the highest individual debt is $166, 275, which means that the biggest borrower in New Zealand history only repaid $725 of their principle in the last year.

“At this rate, the highest borrower will never repay their loan and will pay many thousands of dollars in interest. The student debt scheme is unsustainable – for the growing number of individuals with big loans, for our economy and for our whole society.”

ENDS

For further information please contact
NZUSA Co-President Andrew Campbell
Wk: 04 498 2500 Cell: 0274 86 86 77

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