Students to protest over loans report

By HELEN TUNNAH deputy political editor

Students will protest this week against the Government's new report on student loans, which they say dashes hopes their debt burden will be eased, with relief years away.

With students now owing $6 billion, Auckland and Wellington tertiary students have begun planning anti-Labour demonstrations after the Student Support in New Zealand discussion document ruled out swift or sweeping changes to allowances and the loan system.

Instead the document hoses down students' expectations, saying any policy changes must be financially sustainable in the long term, and increased spending weighed up against demands for health care and transport infrastructure.

Associate Education Minister Steve Maharey, who released the document and called for public submissions, also said any changes would be implemented over many years.

"The Government's final proposals will be part of a staged implementation through several Budgets," the report says.

"Priorities need to be set and choices made. What the Government wants is an improved package of student support that will provide the greatest benefits for New Zealanders within available funds."

The average student loan is now $13,680, and it takes students an average of almost 10 years to pay off the debt.

New Zealand University Students Association co-president Fleur Fitzsimons said yesterday that the document offered little hope for students or graduates.

"This is from a Government that said it was committed to the knowledge economy," she told the Herald.

"We're extremely disappointed. We were led to believe this review would be about relieving the student debt burden. Instead it defends the current situation.

"What we need is real action."

She said students also wanted to see real increases in the number of students eligible for allowances.

"Steve Maharey and the Labour Government are running out of time to deliver on their election promise to make tertiary education affordable. Students were expecting through this review meaningful change, and they haven't delivered."

Ms Fitzsimons said that although the Government had called for submissions on the document, students did not want more talk because that simply delayed the implementation of any new policies.

She said the Students Association's own policy document, to be released this week, would outline the impact student debt was having on the economy and offer alternative policy options.

The discussion document outlines current financial support schemes for students, without making firm proposals for the future. But it does dampen public expectations of major change.

It disagrees with suggestions that students are leaving for overseas after graduating, either to avoid repaying student loans or to earn higher wages to pay the debt faster.

Instead the document says that only 5 or 6 per cent of students register for tax purposes as living overseas, although in the report's small print there is an acknowledgement that that figure may under-represent actual numbers.

On student loans, it says a new report is being prepared about the long-term impact of that debt on social and economic development.

The document restates the Government's intention to broaden access to student allowances, and says that would cost significant sums of money. But it indicates one area being considered is altering income thresholds so an extra 7 per cent of students can get partial allowances.

What students owe

Students owe close to $6 billlion in loan repayments.

A year ago the total was just under $4.7 billion.

More than 395,000 students owe money.

The average amount owed is $13,680, up from $12,830.