Students were protesting against fee increases yesterday as the Government was releasing figures showing student loans would total $14.4 billion by 2020.
The Student Loan Scheme Annual Report, tabled in Parliament, estimates the total June 2020 debt will be less than the $17 billion projected last year. In 2000, the estimate
was $19 billion.
The report showed total debt was $5.3 billion at the end of the last financial year and Tertiary Education Minister Steve Maharey said the reduced forecast was the result of policies that capped fees and course costs.
He said changes were starting to emerge in the scheme's profile, which is 10 years old.
The amount repaid since it began - more than $1.9 billion - was about a quarter of all the debt incurred and more than 120,000 people had fully repaid their loans.
Other statistics in the report included:
* In the 2002 academic year 150,575 students borrowed $934 million.
* The average loan increased from $3628 in 1992 to $6204 last year.
* Fifty-two per cent of borrowers had a balance under $10,000 and 5 per cent of all borrowers had a balance greater than $40,000.
* Overdue loan repayments at June 30 this year were $101 million, or 1.9 per cent of total outstanding debt.
* There were 390,027 people with loans at June 30, this year.
* The forecast average loan repayment time is estimated at 9.5 years.
University Students Association co-president Fleur Fitzsimons said Mr Maharey "could not have chosen a worse time to try to show off how good the student loans scheme is".
She made the comment in a statement before she was arrested at a protest held at Massey University's Palmerston North campus against a 3.5 per cent fee increase.
"[Mr] Maharey has huge problems on his hands and his system of fee maxima is clearly not making tertiary education more affordable. While debt forecasts may have reduced they still show debt nearly doubling to hit $14.5 billion by 2020," she said.
Her comments were supported by the president of the Massey University Branch of the Association of University Staff, Harvey Jones, who said staff supported student calls for the Government to increase funding to the sector, and to improve the ratio of staff to students.
Twelve protesters were arrested yesterday after occupying the registry building at the university.
They are due to appear in the Palmerston North District Court on Friday facing trespass and related charges.
- NZPA
Herald Feature: Education
