Indebted students bankrupt themselves
Mon, 02 Sep 2002
Student debt causes students to bankrupt themselves.
Latest figures from the IRD show a marked increase in student loan debt written off due to bankruptcy.
The amount of student debt written off has increased over $1 million, from $2.8 million in 2001, to $3.92 million in June 2002. This takes a toll on indebted graduates, forcing them to bankrupt themselves, says University of Canterbury Students’ Association (UCSA) president Richard Neal.
“This is another clear indication of the impact of student loans on young New Zealanders,” said Neal. “The government is witnessing something that has been predicted for years by student advocates: the unsustainable outcome of high fees and student loans.
“The sharp increase is the beginning of a growing and alarming trend in New Zealand. Bankruptcy is an all too powerful reminder of a system that could be easily cured by full student allowances and lower fees,” said Neal.
Students and recent graduates would be expecting the government to take heed of the warning signs, said Neal. “Very little research had been done in the area of bankruptcy and student loans.”
However, students should be wary of going down the path of bankruptcy, warned Neal “It limits options of overseas travel and future business opportunities.”
For further information contact:
University of Canterbury Students' Association
President: Richard Neal
Work (03) 364 26 52 ext: 3934
Cell: 027 276 1107