Students owe $300m

The student loan debt continues to rise, with students owing $300 million.

Northlanders owe $300 million to the student loans scheme - and an expert says there are huge consequences for those burdened by the debt.

Northland's student loan debt grew by almost $100 million in the past five years to $300,000,000 as of June 30, according to Inland Revenue figures released under the Official Information Act.

A sociology professor says the debt delays adulthood, increases social inequality and makes "financial risks" of previous norms, such as having children.

Mid North Budgeting Service Trust budget adviser Sue Dunlop-Christie said even short courses could accrue significant debt.

"Many of the clients we see who have student loan debt have done just short courses," she said.

"Often they don't finish the training or they've done something like a computer course and used a loan to buy a laptop but then aren't able to get a job that uses their training so they're not really any better off. We're not talking huge amounts like $80,000 or $90,000 as some people get; they might have less than $10,000 or between $10,000 and $20,000, but when you're on a low income that's a lot of money."

Ms Dunlop-Christie said getting a large student loan for tertiary education was the reality for many young Northlanders.

"If your family doesn't have a lot of money and you want to go to university, that's just what you to have to do. We see it as a positive as they're investing in their futures."

Nationwide, student loan debt grew year-on-year for the past five years to $11,688,600 as of June 30. University of Auckland sociology professor Alan France said student debt was causing several knock-on financial and social effects.

"We used to talk about adulthood coming to fruition between 18 and 21 but now it's more between 25 and 35," he said. "There's lots of long-term evidence that shows you will earn more money if you go to university than if you don't, but these days that payoff takes five to 10 years. Most people now go in to low-skilled, low-paid jobs which are insecure when they leave university, so they wind up fighting large student debts on low incomes from jobs which don't have a great deal of long-term future prospects."

Graduates from low socio-economic backgrounds had it particularly tough, he said. Regardless of background, buying houses and having families were increasingly difficult for young people, he said.