Student debt hits $7 billion

new-zealand-university-student-s-association

Wed Apr 28 2004 12:00:00 GMT+1200 (New Zealand Standard Time)

Student debt hits $7 billion

Wednesday, 28 April 2004, 8:39 am
Press Release: New Zealand University Student's Association

Student debt hits $7 billion thanks to Labour’s inaction on allowances

Total student loan borrowing has hit $7 billion according to figures released to the New Zealand University Students’ Association (NZUSA) under the Official Information Act.

“Student debt would not have reached $7 billion if Labour had taken action on living allowances,” said Fleur Fitzsimons, Co-President of NZUSA. “Two thirds of students have no alternative but to borrow from the loan scheme for rent and food.”

“The government must make good on their promises on allowances in the upcoming budget,” said Fitzsimons. “The scary result of their inaction on allowances is debt growing a billion dollars a year.”

“The government must immediately introduce a living allowance for all students to ensure that students are not so reliant on the unfair student loan scheme.”

“This massive student debt is threatening our society and economy. We have workforce shortages in health and education and graduates are leaving New Zealand because of their student loans,” said Fitzsimons.

“Labour’s pledge card promised affordable education, but these words are hollow when New Zealand citizens are carrying a $7 billion dollar debt for their education,” said Fitzsimons.

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