Teenagers hammered with student debt

As students around New Zealand head back to for another year of tertiary education, tens of thousands of teenagers will be plunged into massive debt, says Alliance Party Youth Spokesperson Matthew Stephen.

The senior Otago University student says the burden of student fees is no way to create a "knowledge society."

"After busting through the 8 billion dollar mark in 2005, New Zealand's student loan debt continues to swell."

Under the Labour Government of Helen Clark course fees have continued to rise: Student fees now account for around a third of tertiary institutions' income, compared to 19 percent in Howard's Australia. The Government now predicts that student loan debt will reach $12.7 billion by 2014/15.

Student debt is crippling young New Zealanders, forcing many to work part-time in low-pay, low-security jobs, when they should be focusing on learning, says Mr Stephen.

"Most young people entering tertiary education are teenagers and simply have no idea about the impact a massive student loan will have on their future."

"If they want to improve themselves and contribute to society, they are penalized."

Mr Stephen says in contrast with a complacent and smug Labour Party happy to crush young people under the debt burden, the Alliance calls for all student debt to be wiped immediately and for full state funding of tertiary education through progressive taxation.

"The student debt monster is a result of a generation of politicians who benefited from free education and the welfare state deciding that a tax cut for themselves was more important than the education of future generations."

While wealthy New Zealanders can afford to pay for their children's education, the prospect of decades of debt repayments makes tertiary education a daunting prospect for working class New Zealanders, he says.

Education is becoming a sausage machine to generate highly trained robots who can't actually think, says Mr Stephen.

"As a result of user pays education we have a totally commercialized system where there is no room for people to undertake studies in socially vital but non-profitable areas."

Mr Stephen says it is time students realised they do not owe a debt of gratitude to the Government for the concession of interest-free loans on the back of ever growing course fees and living costs.

"Things can be better! Students should fight the student loan scheme, not tolerate it."

The Alliance would abolish all student debt immediately, introduce full Government funding of tertiary education, and provide a universal student allowance at the level of the unemployment benefit.

ENDS

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