Education Is A Poor Investment

18 June 02

What is the good in getting an education that incurs a debt you may never pay back?

“A student loan is a extra personal tax for life. Tax that far outweighs the benefit from an education that does not even guarantee a job or a high income,” says Julie Pettett, president of the Aotearoa Tertiary Students Association (ATSA). “The argument that this debt is an investment in your future does not hold true.”

“In today’s environment people need a qualification to get a job. Sadly, the cost of education is more than most of these qualifications will return,” Ms Pettett says.

“A student training to be a chef, and a student doing a BA will incur a similar debt, yet their earning potential is not the same. The loans scheme is a time bomb and needs more changes than the government is promising," Pettett says.

“The financial and social effects of the scheme are horrendous.”

ENDS

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