23 years of debt for one year of study - figures
23 years of debt for one year of study –
new loan repayment figures
Women graduating with a 1 year certificate from polytechnic will take an average of 23 years to repay their student loan, according to new figures released today by the New Zealand University Students’ Association (NZUSA).
“We’ve known for a long time about repayment time for graduates with degrees. However, what today’s figures show are the devastating impact of loans on polytechnic students leaving with diplomas or certificates, “ said NZUSA Co-President Andrew Campbell.
The repayment times, calculated using the Iversen model and matching up student loan borrowing data with average income from the Census, show that women with a 1 year certificate will take 23 years on average to repay their loan, and that men with certificates will take 7 years to repay their loans.
“The figures are even worse for those with two year diplomas, “ said Campbell. “Women with diplomas will be repaying their loans for 24 years, and men with diplomas will take an average of 13 years to repay.”
“The years taken to pay off the loan are way out of proportion for the time taken to complete these courses. These borrowers are ordinary New Zealanders – tradespeople, clerical workers, and carers – not well-paid lawyers or accountants,“ said Campbell. ”The loans scheme punishes them for learning a skill in order to get a decent job.”
“Women at polytechnic are facing repayment times over three times longer than their male classmates. For many Maori and Pacific graduates, income is lower and their repayment times are even longer. The loans scheme is punishing Kiwi workers for nearly their entire working lives.”
“The new government needs to act now. The loans scheme is not just about doctors or teachers. It is hurting families and penalising women and those on low income by making them pay more for their education. Lower fees and increased access to student allowances can’t come soon enough for these borrowers.”
comment please contact Andrew Campbell
Wk: 04 498 2500 Cell: 0274 86 86 77
Information on repayment schedules attached