Students see 'lifetime of debt' after fees rise

Photo / Mark Mitchell

Angry students say they will be left with a "lifetime of debt" following Auckland University's decision to raise its fees by 6.3 per cent next year.

The increase, which was approved at a meeting this week, means some domestic students will have to pay up to $1600 extra in fees, in addition to $660 in student services fees and building levies.

The university says next year's costs are expected to increase by 1.7 per cent more than the Government's funding rates - effectively leaving the organisation $4.5 million short.

However, the Students' Association says that excuse is not good enough and the University Council which approved the increase should have sent a message back to the Government instead of passing on its costs to students.

"The council has missed a prime opportunity to send a clear message to the Government that failure to adequately provide for rising costs is unacceptable," said Joe McCrory, Students' Association president-elect and student representative on the council.

"We appreciate that the university is under severe financial pressure as a direct result of underfunding, but it is not fair that students bear the burden of Government inaction.

"Skyrocketing tuition fees and the need to borrow to live mean that students have little choice but to take on a massive student loan, locking graduates into a lifetime of debt."

Mr McCrory said the council needed to do more to acknowledge the financial difficulties faced by students and the significant amount of debt many are forced to take on in order to study at Auckland University. The Government also needed to commit to a significant injection of funding towards the public tertiary education system.

"In order for this to happen, however, students, staff, and institution management need to work together collectively. In the interim, students should not shoulder the burden of underfunding in the sector by being forced to pay increasing tuition fees."

Vice-chancellor Professor Stuart McCutcheon said in light of "inadequate Government funding" the fee increases were absolutely necessary in order to maintain academic quality.

University costs are expected to increase by 3.9 per cent but Government funding rates are only going up by 2.2 per cent.

"This is effectively a cut in funding of $4.5 million."

To make up the shortfall and maintain its current position, Professor McCutcheon said it would have been necessary to increase student contributions significantly more but recently introduced regulations cap increases at 4 per cent (excluding GST).

Massey, Victoria and Canterbury universities have all increased their fees for next year at the maximum 4 per cent limit. AUT has not yet set next year's fees.

Professor McCutcheon said New Zealand needed to invest more in tertiary institutions. At the moment 60 per cent of the total expenditure in tertiary institutions comes from a direct public investment, compared with an OECD average of 79 per cent.

"Although the Government is investing in the number of university places, it also needs to invest more on a per student basis. The level of investment per student is strongly related to the quality of institutions."

Tertiary Minister Steven Joyce who is overseas said last month the country's publicly funded tertiary institutions were generally in strong financial positions and were well-placed for future challenges and growth. He said overall Government funding had increased significantly, net assets had risen and non-government funding had also grown substantially.

"The times ahead will continue to be challenging for the sector as institutions adjust to changes ... Institutions and the Government are working hard to manage the change well and to support quality teaching, learning and research."