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Students lose interest while gaining debt

Students lose interest while continuing to gain debt

By 2015, Students will have accumulated almost $13 billion dollars in debt according to the Student Loan Scheme Annual Report tabled in Parliament today.

"This report proves that every time a student signs a loan contract, they are signing themselves up for a life-time of debt," says Richard Mitchell, Co-President of the Otago Polytechnic Students' Association (OPSA).

In August, the Otago Polytechnic Council voted to increase students fee's by the maximum allowable under the Fee Course Cost Maxima policy (FCCM).

"Every time a fee increase is passed by an Institution's Council, as the Otago Polytechnic saw again this year, students fall further and further into debt and this is having well-documented negative impacts on their lives after graduation," states Natalie Absalom, OPSA Co-President.

"Even though the Government just posted more than an $11 billion dollar surplus, they are still failing New Zealand by not investing in quality public education," points-out Mr. Mitchell.

"Government continues to allow Institutions to pass under-funding onto students; the per-student contribution from Government has continually decreased from where it was 15 years ago," said Ms. Absalom.

The Otago Polytechnic Students' Association calls on the Government to recognise the negative impacts of the Student Loan Scheme and return us to the education system under which most of the politicians were educated; a free education system.


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