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

 

Student Debt Set To Cripple NZ

Student debt will cripple the economy within the next two decades unless the government moves with some urgency to address the increased financial burden that has been placed on students over the past decade according to Chris Hipkins, President of the Victoria University of Wellington Students’ Association.

Figures released to VUWSA under the Official Information Act yesterday show that projections for total debt accumulated under the student loan scheme have almost doubled since a similar analysis was released in 1999.

“In 1999 the Government was projecting student debt to hit $11.6b in 2020. Today that figure has rocketed up to $19.4b. It won’t be long before accumulated student debt is the single largest item on the government’s balance sheet,” Mr. Hipkins said.

“The Government presently records student debt as an asset, but the truth of the matter is they still haven’t reached a point in time where repayments will equal drawings, so total accumulated debt will continue to grow indefinitely,”

“The current generation of politicians are mortgaging the future of our country. The burden of this will not only be felt by students who graduate with large debts, but also by the future taxpayers of New Zealand who will be left to clean up the mess,”

“While we welcome the recent moves the government has made towards freezing fees and easing loan repayment conditions, it is now clearly apparent that this is nowhere near enough. If we are to get this debt under control fees must come down and access to living allowances will have to increase,” Mr. Hipkins said.

“It’s time for the government to bite the bullet and make tertiary education a much higher priority. The short-term costs of increasing our investment in educating future generations of New Zealanders will be more than outweighed by the benefits,” Mr. Hipkins concluded.


--- ENDS ---

Projections for total accumulated student loan debt*

1999 figures released by then Minister for Tertiary Education Max Bradford in response to a parliamentary question by Labour MP Steve Maherey.

2001 figures released by Associate Minister for Education (Tertiary) Steve Mahery in response to a request under the Official Information Act by VUWSA President Chris Hipkins


Projections in 1999 Projections in 2001
1999 $3,245.6 1999/00 $3,520.8
2000 $3,782.5 2000/01 $4,514.2
2001 $4,293.2 2001/02 $5,250.1
2002 $4,775.5 2002/03 $5,982.4
2003 $5,252.6 2003/04 $6,730.1
2004 $5,733.0 2004/05 $7,481.3
2005 $6,244.5 2005/06 $8,236
2006 $6,690.5 2006/07 $9,006
2007 $7,133.6 2007/08 $9,814
2008 $7,553.2 2008/09 $10,625
2009 $7,954.8 2009/10 $11,450
2010 $8,328.6 2010/11 $12,270
2011 $8,715.9 2011/12 $13,070
2012 $9,082.5 2012/13 $13,860
2013 $9,460.8 2013/14 $14,670
2014 $9,825.8 2014/15 $15,500
2015 $10,209.8 2015/16 $16,300
2016 $10,593.9 2016/17 $17,100
2017 $10,940.9 2017/18 $17,800
2018 $11,289.1 2018/19 $18,600
2019 $11,626.2 2019/20 $19,400
2020 $11,928.8 2020/21

FOR FURTHER COMMENT CONTACT:
Chris Hipkins, VUWSA President
Phone (04) 473 8566 ext 830; Mobile (021) 707 927
Email: chris.hipkins@vuw.ac.nz

© Scoop Media

 
 
 
Culture Headlines | Health Headlines | Education Headlines

 

2021: NZ To Host Women’s Rugby World Cup

New Zealand’s successful bid to host the 2021 Women’s Rugby World Cup will raise the profile of the game locally and provide a valuable economic boost for the game, Minister for Sport and Recreation Grant Robertson says. More>>

ALSO:

Max Rashbrooke Review: Mahler 7 - NZSO

Gustav Mahler’s Seventh Symphony may be one of the least well-known of its ilk, but Edo de Waart and the New Zealand Symphony Orchestra made a compelling case for a reassessment. They showed us a work of immense variety, surprising contrast and delicate shades of light and dark. More>>

Howard Davis Review: Strange Overtones - David Byrne's American Utopia Tour

Scotch-born singer-songwriter David Byrne starts each show on his latest world tour stroking a pink brain as he sits alone at a table in a gray three-button Kenzo suit singing a song called Here from his latest album American Utopia. More>>

Governor-General's Speech: Armistice Day 100 Years On

The response was more muted amongst our soldiers at the Front. Many received the news quietly... There was no cheering. The chaps didn’t get excited. It was just a matter of relief. We didn’t celebrate at all. More>>

ALSO:

Auckland Fringe Programme: A Celebration Of The Bizarre And Beautiful

Building on a huge 2018 programme that saw 492 creatives take 81 events for ventures around the city for a total of 347 performances, Auckland Fringe returns this summer, running February 19 – March 3, 2019. More>>

 
 
 
 
 

LATEST HEADLINES

  • CULTURE
  • HEALTH
  • EDUCATION
 
 
  • Wellington
  • Christchurch
  • Auckland