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Home / New Zealand

Cardboard box protest on student debt

By Martha McKenzie-minifie
NZ Herald·
9 Apr, 2008 05:00 PM2 mins to read

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Art student Joseph McCrory, who owes $18,000, demonstrates in the Auckland University quad. Photo / Glenn Jeffrey
Art student Joseph McCrory, who owes $18,000, demonstrates in the Auckland University quad. Photo / Glenn Jeffrey

Art student Joseph McCrory, who owes $18,000, demonstrates in the Auckland University quad. Photo / Glenn Jeffrey

KEY POINTS:

Auckland university students will join national protests today with student debt predicted to reach $10 billion.

New Zealand Union of Students' Associations co-president Liz Hawes said the debt was growing at an "alarming" rate of about $1 billion a year. The system was inequitable and was creating a debt-laden generation.

"Family formation, home ownership, business start-up and retirement savings are all widely known to be severely negatively affected by student debt. Add to that the contribution of this debt to increasing brain drain and you have a recipe for disaster."

Ms Hawes said more than 700,000 people had borrowed from the student loan scheme since its introduction in 1992.

The association's latest Student Income & Expenditure Survey identified significant increases in students' living costs and debt.

The survey, conducted last year, showed average student debt rose 54 per cent since the last survey three years earlier, and now topped $28,838.

But Tertiary Education Minister Pete Hodgson said the survey considered "total student indebtedness", including borrowing from banks, parents and the student loan scheme.

"The Government's stated policy position is to not move to universal student allowances but to continue to make progress towards it," said Mr Hodgson.

"There will be some further support for students in next month's Budget as there has been in each of our first eight Budgets."

He said at an individual level the average ability to pay had gone up and the repayment time had gone down.

Auckland University Students Association president David Do said students planned 24 hours of protest action.

Students will camp at the campus overnight in cardboard boxes.

Mr Do said it was the first time the box "ghetto" had been set up at the university - a move that symbolised student poverty and the debt burden faced by many students who borrowed to cover living costs.

Mr Do wanted the student allowance rules changed so more students were financially supported.

ROUND THE CLOCK
Auckland University students' 24-hour protest:

10am: Building of a cardboard box city starts.
12pm: Campaigner John Minto gives an address.
1pm: Debating Society political debate on student debt.
2-5pm: DJ in the quad.
6pm: Soup kitchen in the quad.
7-8am: Breakfast for students who stayed overnight.
9-10am: Box city wrap-up.

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