Student union critical of uni fee 'tinkering'

Steven Joyce says annual tertiary fee increases will be limited to 3 per cent, down from 4 per cent. Photo / Paul Taylor

A reduction in the fee increases tertiary institutions can charge is likely to save the average student $60 a year, but student unions say this is unlikely to help solve student debt or counter the growing price of rent.

Currently institutions are allowed to put up student fees by a maximum of four per cent each year - which all universities have in recent years.

However, Tertiary Education, Skills and Employment Minister Steven Joyce said next year the annual maximum fee movement would come down to 3 per cent, and be subject to public consultation in June.

The national student union, the New Zealand Union of Students' Associations (NZUSA), said the proposed fee change was expected to save the average student $60 per year on what they might have been charged.

National student president Rory McCourt said while the theoretical saving was welcome, $60 was nothing compared to the fees and charges that the Government had "slapped" on students since 2008.

"Let's remember we're still going to have fee hikes, just smaller hikes."

Mr McCourt said he was also critical of the Government's move to freeze the parental income threshold for allowances for a further four years, meaning up to an extra 4000 students from modest-income families would have to borrow to live.

"Budget 2015 does nothing to reduce the $14 billion student debt mountain that keeps on growing. In fact, their cuts to allowances may actually accelerate its cancer-like growth.

"Under National, student debt has shot up four billion dollars since 2008. Toxic debt is a drag on our economy and is preventing the next generation from entering the housing market. The Government must reign in the ballooning private cost of tertiary education. It's time for real reform, not just tinkering."

Mr McCourt said as well as this, Budget 2015 ignored out-of-control rent rises students were facing across the country, particularly in Auckland, Wellington and Christchurch.

Last year the average price of rent for a student in Auckland went up $8.26 per week for a single room in a three bedroom flat, Mr McCourt said.

"The Government has got to give students enough to live on."