Zero student loan in 2004

Zero student loan in 2004

“A zero student loan option through industry training is a tertiary education pathway that students and parents of students should consider in 2004”, says Darel Hall Executive Director of the Industry Training Federation.

According to Ministry of Education figures, 150,575 students borrowed through the Student Loan Scheme in 2002. Government spending on student loans for the 2002-2003 year was budgeted at $952m.

In 2002 and 2003 the number of apprentices/industry trainees drawing a student loan for industry training was zero. The same will apply in 2004.

While most students generally use their holiday job to boost funds for their next year of tertiary study or to get that much-coveted first car, it can also be a catalyst for developing a skilled career.

Students who are concerned about student loan debt may look to their current employer for their future options.

“Skilled careers in building, tourism, engineering, retail, the equine industry, the public sector, indeed all industries, are available now. Apprentices and trainees earn while they learn and there is no student loan”.

As these concerns about student debt rise the myths about working in industry are increasingly being dispelled.

Mr Hall: “Perceptions about skilled career paths available for young people contemplating tertiary education often don’t match reality.

“The pay, education opportunities and career development prospects mean industry training is a top option for many people. For example, a trained line mechanic can earn up to $70,000 in New Zealand and over triple that in the United States. And builders in Auckland are earning top dollar.

“Parents should be encouraging their children to look at the possibility that their holiday job can lead to a career. Transferability of skills across industries is often hugely underestimated. That means that you don’t have to stay in the same industry for your entire career.

“The Federation can put students and parents in touch with the right Industry Training Organisation to discuss options; contact skill@itf.org.nz or 04 499 8155”.

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