Young doctors sick of debt

Medical students owe an average of $70,000 when they graduate, reports ROSALEEN MACBRAYNE.

After six years training to be a doctor, Jonathan Albrett will go into the workforce next month shackled by a $90,000 student loan.

Even on a salary between $50,000 and $60,000, the 25-year-old cannot see how he will make much impact on reducing the debt, which he will have to start paying interest on.

He says about half his class at Auckland Medical School owe a similar amount.

Research published in the New Zealand Medical Journal yesterday shows medical students are graduating with debts averaging $70,000 and, in some cases, topping $100,000.

Interest alone is expected to amount to $4900 on a $70,000 loan in the first year of employment.

About 82 per cent of students surveyed at Auckland and Christchurch medical schools said they planned to leave New Zealand within two years of graduating - and many may never return.

Mr Albrett will be among them, once he completes a year as a house officer at Taranaki Base Hospital. But first he has to borrow more to move there from Auckland.

When he began his medical studies in 1995, the annual fees were about $2000. Now they are just over $10,000.

"There was no warning when I started that they would increase 500 per cent," he said. "You can work over summer to pay $2000 but it is very hard to earn $10,000 and still study and live."

Mr Albrett is a trainee at Auckland Hospital. Although intending to specialise, he has not decided yet in what area of medicine that will be.

He said it was very stressful for students worrying about a future marred by years of debt: "It's a bit demoralising, especially working 70 to 90 hours a week and only paying off the interest.

"The other option is to go overseas and make twice as much money."

Australia was attractive because of its closeness to home and so was England, with its favourable exchange rate and incentives for doctors to work in rural and low socio- economic urban centres.

He said the Government should be offering some form of compensation, such as tax cuts, bonus schemes or interest write-offs after graduation to entice doctors to stay in New Zealand.

Tertiary Education Minister Steve Maharey said yesterday that $800 million had been spent over four years on helping students, principally by cancelling interest on loans while they were still studying and by stabilising fees.

The medical students' concern was valid, but other professions in similar circumstances, including dentists, teachers, nurses and social workers, also needed to be considered.

He said the Government would respond next year to a review of student fees, loans and allowances by the education and science select committee.

The committee is expected to report to Parliament next week.