Student debt of $65,000 hits doctors

Nearly half of first-year doctors are putting off having children, if at all, as they struggle to repay student loans averaging $65,000, new research shows.

The research, released today found 48 per cent first-year doctors said they would consider going overseas as a result of their debt.

Four out of 10 said their debt would have a direct impact on the area they worked in - forcing them into high-paid specialties, and raising concerns about shortages in general practice and rural areas.

"Doctors and Debt: The Effect of Student Debt on Doctors" was a joint project by the New Zealand University Students Association, the New Zealand Medical Association and the New Zealand Medical Students Association.

A total of 157 first-year doctors - half them working in New Zealand last October - completed the questionnaire.

NZUSA co-president Camilla Belich said the figures showed high debts were pushing desperately-needed doctors overseas in droves.

New Zealand medical students paid some of the highest fees in the world and as a result 75 per cent of doctors owed more than $50,000 at graduation, while 13 per cent owed more than $100,000, she said.

"I think Government needs to be aware this policy is stopping New Zealanders being born."

Fifth-year medical students Simon van Rij and his wife Kerryn have a combined debt of $90,000 and expect that to climb up to $130,000 by the time they finish their degrees next year.

Mr van Rij said finances would force them to wait until their early 30s to have children. It would also make paying off a mortgage difficult.

"If Kerryn starts having kids her loan will accumulate and the interest will just keep going up."

Mr van Rij said the couple, both 24 and working part-time as fitness instructors, planned to travel overseas, possibly permanently, to pay off their loans.

New Zealand Medical Student Association president Jesse Gale warned many students would choose high-paid specialties in the city rather than general practice so they could pay off debts quicker.

Specialists at the top of the scale can earn a base salary of $163,500, not counting overtime.

Dr Don Simmers, deputy chair of the medical association, said doctors had traditionally gained overseas experience but the concern now was that there was little incentive for them to return. "We need practical ways of encouraging doctors to stay here and work."

The report recommended the Government reduce medical school fees (currently $11,000 a year), increase the trainee intern grant and give all students a living allowance.

Demographers have previously said the student loan scheme is a threat to New Zealand's birth rates.

Young doctors

The study of first-year doctors found:

* Average debt at graduation was $65,206.

* Nearly half said they would consider going overseas because of their debt.

* 42 per cent said their loan had influenced their decision about when and if to have children.

* 88 per cent reported increased levels of stress because of their loan.

* The report recommended the Government reduce medical school fees (currently $11,000 a year), increase the trainee intern grant and provide all students with a living allowance.