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Student Debt: $20 Billion by 2022

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Sat Oct 03 2009 13:00:00 GMT+1300 (New Zealand Daylight Time)

Student Debt: $20 Billion by 2022

NZUSA - New Zealand Union of Students' Associations Saturday, 3 October 2009, 12:16 pm
Press Release: NZUSA

Student Debt: Government says - $20 Billion by 2022

Student leaders are gravely concerned today at information released to NZUSA under the Official Information Act that forecasts total student debt reaching $15 Billion dollars by 2015 and a staggering $20 billion dollars by 2022.

“The figures released to us today show that if the current Student Loan Scheme and wider fee structure remains in place over the next decade it will nearly double what is owed by students and graduates today pushing debt levels well beyond crisis point” said Jordan King, Co-President of the New Zealand Union of Students’ Associations.

“Student Debt already sits at $10 Billion dollars and is having huge effects on graduates in terms of major life decisions like saving for a first home, starting a business, having a family, continuing study at higher levels, and represents a major factor as to why so many skilled kiwis head offshore. The predicted doubling of student debt in just over a decade represents a growing mortgage on future generations of New Zealanders” continued King.

“Previous Governments, both National and Labour, have neglected to fix the system allowing debt to balloon out of control since the introduction of the Student loan Scheme in the early 1990s.” said King. “If debt continues to increase at such alarming rates, student loan borrowers today, will find themselves paying for their children’s tertiary fees tomorrow – in effect, a double burden of debt.

“This debt only represents the debt that students will owe government. Research by NZUSA’s Income and Expenditure Survey indicates students also take on high levels of private debt to fund their studies, which make this figure all the more horrifying” said King.

“Urgent effort must be taken by the National-led government to reverse the tide otherwise New Zealand society will be suffering the effects of this debt burden for many more decades to come” concluded King.

ENDS

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NZUSA - New Zealand Union of Students' Associations

NZUSA - New Zealand Union of Students' Associations

We stand for opportunity, for all.

NZUSA is the New Zealand Union of Students' Associations, the national body that represents New Zealand's students' associations and the interests of New Zealand's 400,000 students at universities, polytechnics and in trades training.

We conduct original research, advocate to Government and through the media, and support New Zealand's students' associations to be more effective on behalf of their members. We advocate alongside Te Mana Akonga – The National Māori Students' Association, and Tertiary Women New Zealand – The NZUSA Women's Caucus.

Since 1929, we've believed in a society rich in opportunity, where anyone from anywhere can become any thing. We support accessible, affordable quality public tertiary education.

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