Student Associations Challenged On Loan Income
Student associations are being challenged to declare how much of their income is derived from money borrowed under the
student loan scheme, Student Choice spokesman Glenn Peoples said today.
We estimate about half of compulsory student associations' income comes from money borrowed under the loan scheme.
Before student associations condemn the level of debt, they should come clean and tell people how much of their
compulsory income comes via the scheme.
Most tertiary students are forced to pay fees to regional student associations before they can study. Regional
associations then channel some of this money, in the form of a per student levy, to the national student organisations,
NZUSA and the Aotearoa Tertiary Student Association.
The ability to borrow compulsory student association fees under the loan scheme allows the cost of student politics to
be buried in the total amount students borrow at the start of the year, Mr Peoples said.
"NZUSA and other associations are unlikely to argue for the removal of the ability to borrow association fees as it
would mean students would have to pay their fees separately. This would cause students to question why they are forced
to pay for student politicians," Mr Peoples said.
Mr Peoples said students should be free to study without being forced to fund student politics.
Student Choice promotes freedom of association through voluntary membership of student associations.