Increased cost of study 'worrying'

A 2.9% increase in the cost of tertiary education was worrying but not surprising, Otago University Students' Association president Laura Harris says.

Speaking last night, Ms Harris was responding to news the cost of tertiary education had soared seven times faster than the rate of inflation.

Data from the consumer price index showed a 2.9% rise in the first quarter of this year. Inflation over the same period was 0.4%.

Labour leader Andrew Little said the figures showed tertiary education was fast becoming ‘‘out of the reach of many''.

The Government hit back, saying the growing number of graduates showed the cost was not placing study out of reach of students.

Minister for Tertiary Education, Skills and Employment Steven Joyce said through a spokeswoman the number of students graduating was more than 20% higher than in 2008, and the number studying fulltime was significantly higher as well.

‘‘That shows that the costs of study are not placing tertiary study out of reach for students.''

Ms Harris said she was ‘‘a little bit put off '' by Mr Joyce's comment.

She said student numbers were increasing because it was becoming increasingly important for people to have tertiary qualifications before entering the workforce or to get promotions.

‘‘I don't necessarily think that's indicative of it still being affordable.

‘‘I think it's indicative of it still being very necessary.''

There was also an issue of government underfunding at university, which led to more of a user-pays system.

‘‘More and more costs are ending up with students, and students are increasingly taking out credit cards and loans in order to afford that.''

Mr Little said it was crucial all New Zealanders were able to study to the levels to which they aspired.

‘‘We must also ensure that young New Zealanders have the skills they need for the workplace today and into the future.

‘‘A more educated workforce creates a stronger economy, and that's good for everyone.''

Parents were bearing the brunt of the costs, he said, being forced to fork out the cash for their child's education, across all sectors from primary to tertiary.

Labour had vowed to provide three years free post-school study or training for every New Zealander if elected.

Mr Joyce's spokeswoman said the Government had lowered the maximum annual fee increase universities could charge since it had been in office and it was now capped at 3%.

‘‘Taxpayers pay on average about 70% of the cost of tuition. Student fees pay the other 30%.

‘‘Most students borrow interest-free through the student loan scheme to pay for the fees.

‘‘On average, students are paying off these loans through their wages in about six years, if they remain in the country following graduation.''

Additional reporting: NZME.

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