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Published Date: 10 March 2008
Student debt milestone or millstone?
“New Zealand’s student loan scheme debt is rapidly approaching another milestone: the $10 billion mark. New ways of supporting students must be explored as a matter of urgency” said Stephnie de Ruyter, DSC Leader.
“At the very least, calls by the New Zealand Union of Students’ Associations to introduce a living allowance for all full-time students should be heard and acted on immediately” she said.
Ms de Ruyter cited recently released research which found that the average student loan has risen 54% since 2004 and is now $28,838. She noted that the current policy of means-testing students on parental income until the age of 25 effectively reduces access to the student allowance and increases reliance on student loans, bank overdrafts and credit cards.
“Parental means testing is a discriminatory practice which assumes student dependence on parents for a full seven years after the legal age of adulthood. A living allowance or guaranteed basic income for all full-time students is a fair, realistic alternative to the unsustainable debt-based scheme favoured by recent governments” Ms de Ruyter said.
“$10 billion of student loan debt: is this a milestone or a millstone?” asked Ms de Ruyter. “Democrats for social credit supports calls for a modern funding mechanism to support tertiary students.”
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