Debt leaves teachers staggering

More than 90 per cent of new teachers graduate with the millstone of student debt around their necks, according to a study.

And as they don their caps and gowns, their total average debt is more than $23,187, says the report.

Teachers in Debt: A Report Card, released today by the University Students' Association and primary teachers union the Educational Institute, surveyed 841 teachers working in early childhood centres and primary schools.

"This research shows that almost all new teachers are now graduating with staggering levels of student debt and are experiencing stress while they teach as a result," said NZEI president Colin Tarr.

Of their debt, 85 per cent of the teachers, all in their first or second year, said it came from the student loan scheme.

The average loan debt was more than $16,000.

The nation-wide report also found that more than two-thirds of new teachers reported stress because of their student loans, and one-third said they planned to work overseas.

Half of those surveyed blamed the debt for their decision, and almost a third said the amount of money they owed would influence whether they would have children.

Of those that already had children, half said their debt impeded their ability to provide for them.

Andrew Kirton, co-president of the University Students' Association, said the Government policy of high fees and restricted allowances was the cause of the problems.

"The evidence is very clear: force teachers deep into debt while they train and there will be consequences for our society and our children," he said.

Fees for trainee teachers have risen from zero to about $4000 a year in the past 15 years.

The students' association and the teaching union said the report showed fees should be cut, with a "clear vision" for phasing them out completely.

"Teachers play an essential role in our society, but they are effectively being asked to subsidise the education system by shouldering the cost of fees for their own training," the report concluded.

One month ago a similar investigation into the effects of student loans and debt on doctors revealed that nearly half of first-year doctors were putting off having children as they struggled to repay loans averaging $65,000.

The teachers' report recommended a living allowance for all students and a 10-year repayment cut-off, after which graduates' debt would be written off.

Acting Education Minister David Benson-Pope said last night that Labour was progressively improving student loan and allowance rules.

However, Ministry of Education analysis of Statistics New Zealand figures showed graduate teachers had an average loan debt $2500 less than other than bachelor degree graduates.

Also, people with a teaching qualification were less inclined to go overseas in the first few years post-study than graduates in other fields.

Mr Benson-Pope said Government initiatives included scholarships, relocation grants and returning to teaching allowances.

TEACHERS IN DEBT

92 per cent of new teachers graduate in debt.

The average owed is $23,187 (the average student loan debt is $16,305).

30 per cent say their student loan influences whether they will have children.

One-third plan to work overseas.