Education Policy | Post Primary | Preschool | Primary | Tertiary | Search


Latest Student Loan Figures Shocking

Figures released today by the New Zealand University Students’ Association (NZUSA) show that the biggest student loan is now $167,000, $27,000 more than the highest one last year. The figures were released to the association through an Official Information Act request from the office of the Minister of Revenue, Dr Michael Cullen.

“This new figure is simply shocking and demonstrates how out of control the student loan scheme is,” said NZUSA Co-President Andrew Campbell.

“It’s hard to see how a loan of that size will ever be paid back. Student loans are an economic shackle on graduates that will inevitably have a disastrous effect on both the economy and society,” said Campbell.

“The government needs to do more than simply tinker with the loan interest rate. The two primary causes of student loan debt are the lack of a living allowance for most students and high tuition fees. The government needs to address these two issues if it is truly committed to making inroads into the student debt problem,” said Campbell.

“Tertiary institutions also have the opportunity to mitigate the snowballing effect of the scheme by accepting the government’s fee freeze deal for 2002. If all universities rejected the deal and increased their fees by $500, the figure suggested by the Victoria University Vice-Chancellor, an extra billion dollars of debt will be accumulated over 10 years. Students simply cannot stomach that,” said Campbell.

“Students have suffered most from the failed user pays experiment in tertiary education over the past decade. The government has made small steps to cut the costs of tertiary education for students, but clearly much more needs to be done to ensure we have an educated and innovative society that is not burdened with massive debt,” said Campbell.


Student Loan Update – March 2001

Total number of loan debts
In the period between April 2000 and March 2001, there were an extra 38,698 borrowers, or 13.88% This figure doesn’t include people who have just started studying this year, though it does include nearly all of the 2000 academic year loans.

Biggest loan debt
The biggest loan debt is now $167,000. Last year the figure was between $130,000-$140,000.

Range of Student Loan Debts
Below is a table of loan debts for the last three years. There’s been a slight decrease in the proportion of the bigger loan debts though it is interesting that loans over $50,000 have had a slight increase as a proportion of all student loans.

Range of Loan Balances Number and % of Borrowers as at 31/3/01 Number and % of Borrowers as at 30/4/00 Number and % of Borrowers as at 30/6/99
Under $5,999 120,265 (37.89%) 105,390 (37.82%) 95,035 (38.42%)
$6,000 - $9,999 61,126 (19.25%) 52,575 (18.86%) 48,170 (19.47%)
$10,000 - $14,999 47,971 (15.11%) 41,081 (14.7%) 38,865 (15.7%)
$15,000 - $19,999 28,182 (8.87%) 25,534 (9.16%) 22,716 (9.18%)
$20,000 - $24,999 19,325 (6.08%) 18,093 (6.49%) 15,485 (6.26%)
$25,000 - $29,999 13,057 (4.11%) 11,714 (4.2%) 9,909 (4.01%)
$30,000 - $34,999 9,617 (3.02%) 8,718 (3.13%) 6,834 (2.76%)
$35,000 - $39,999 6,207 (1.95%) 5,538 (1.99%) 4,129 (1.67%)
$40,000 - $44,999 4,384 (1.38%) 3,997 (1.43%) 2,810 (1.14%)
$45,000 - $49,999 2,693 (0.84%) 2,361 (0.85%) 1,467 (0.59%)
$50,000 - $54,999 1,771 (0.55%) 1,503 (0.54%) 879 (0.36%)
$55,000 - $59,999 1,042 (0.32%) 850 (0.3%) 465 (0.19%)
Over $59,999 1,754 (0.55%) 1,340 (0.48%) 604 (0.24%)
Total Borrowers 317,394 278,694 247,368

© Scoop Media

Culture Headlines | Health Headlines | Education Headlines

Legendary Bassist David Friesen Plays Wellington’s Newest Jazz Venue

Friesen is touring New Zealand to promote his latest album Another Time, Another Place, recorded live at Auckland's Creative Jazz Club in 2015. More>>

Howard Davis Review: The Father - Descending Into The Depths of Dementia

Florian Zeller's dazzling drama The Father explores the effects of a deeply unsettling illness that affects 62,000 Kiwis, a number expected to grow to 102,000 by 2030. More>>

Howard Davis Review: Blade Runner Redivivus

When Ridley Scott's innovative, neo-noir, sci-fi flick Blade Runner was originally released in 1982, at a cost of over $45 million, it was a commercial bomb. More>>

14-21 October: New Zealand Improv Festival In Wellington

Imagined curses, Shibuya’s traffic, the apocalypse, and motherhood have little in common, but all these and more serve as inspiration for the eclectic improvised offerings coming to BATS Theatre this October for the annual New Zealand Improv Festival. More>>


Bird Of The Year Off To A Flying Start

The competition asks New Zealanders to vote for their favourite bird in the hopes of raising awareness of the threats they face. More>>

Scoop Review Of Books:
Jenny Abrahamson's John & Charles Enys: Castle Hill Runholders, 1864-1891

This volume will be of interest to a range of readers interested in the South Island high country, New Zealand’s natural environment, and the history of science. More>>