The cost of a tertiary education is shaping up again as a major election-year issue. Student debt levels are spiralling and student leaders have renewed calls for a universal student allowance. But, as tertiary education reporter Allison Rudd discovered, that goal appears to be an unrealistic expectation and the country's half million or so students face more years of "scrooging it".
University and polytechnic students are poor. There is nothing new in that.
Living in a cheap flat on the smell of an oily rag, eating mince for dinner and foregoing high-priced concerts and movie nights in favour of cheap entertainment goes with the territory.
But a new survey of student spending and income shows a marked change, and a trend student leaders say is worrying.
Students are borrowing from wherever they can to pay for increasing tuition fees, course-related costs and living expenses.
The survey is commissioned by the New Zealand Union of Students' Associations and carried out every three years by a private company.
Last year more than 7000 questionnaires were distributed across 19 campuses, including 450 at the University of Otago and 300 at Otago Polytechnic.
Nationally, almost 3800 questionnaires were returned, providing what the survey company said was a satisfactory response rate of 54%.
The latest survey shows while the amount students are borrowing on student loans has not shifted much between 2004 and 2007, students are racking up debts on credit cards, bank loans, loans from family and friends and accumulating overdrafts to make ends meet.
Average overall debt (excluding mortgages) rose by 54% between 2004 and last year, and a whopping 147% since 2001.
In 2001, only 19% of students surveyed had debts of $15,000 or more; by last year that figure had grown to 43%.
The average student now owes almost $29,000, a figure Otago University Students Association president Simon Wilson described as "pretty shocking''.
"It shows student loans are not covering everything students need to study and live.''
Borrowing from other sources was required because students' loan scheme borrowing was capped.
The survey confirmed student debt was "spiralling out of control'', Otago Polytechnic 2008 co-president Ryan Ward said, and indications were the situation would not improve.
"The total amount borrowed in student loans will hit $10 billion sometime this month and is predicted to increase by $1 billion annually until 2015.
"After that the incline gets steeper and the total is expected to increase by $1 billion every 11 months.''
Like other student leaders, Mr Wilson and Mr Ward want universal student allowances - a weekly government benefit which does not have to be repaid and available to anyone in
full-time study regardless of their financial means or those of their parents.
Some allowances are available now, but the criteria are tough. Only 38% of students receive any "free money'', with an average weekly payment of $145.
Mr Wilson and Mr Ward said access to allowances was plainly inadequate when the survey showed the average student spent $443 a week on living expenses ($15,948 over a 40-week academic year), and might spend up to almost $13,000 more a year on major expenses such as tuition fees, textbooks, clothing, cars, bicycles, computers, stereos, visits to the doctor or dentist and travel outside the city or town in which they are studying.
But there appears no chance of either a Labour- or National-led government introducing universal allowances. Aside from philosophical reasons, a simple calculation shows it would be unaffordable.
There were about 491,000 students in New Zealand in 2006. Giving them all even $150 a week would cost about $7.3 million a week and close to $3 billion annually.
The Government "could not do it all'', Tertiary Education Minister Pete Hodgson said, particularly as it was committed to personal tax cuts, while National tertiary spokesman Dr Paul Hutchison said universal allowances were "extremely unlikely''.
However, at this stage anyway, the two men do not seem far apart in their general views on student loans and allowances.
Unsurprisingly, both strongly support the student loan scheme, introduced by a National Government in 1992, and made interest-free by a Labour Government in 2005, saying it had had the desired effect of making tertiary education more accessible, particularly for those from lower
socio-economic backgrounds.
Between 1994 and 2006, the number of tertiary students increased by 48%, from 254,100 to 491,000.
Enrolments by Maori and Pacific Island students increased by 284% over the same period.
The number of people in New Zealand with a bachelor's degree or higher qualification increased almost 100%, from 224,000 to 448,000.
Both men said continuing to maintain a quality tertiary sector and to make tertiary education accessible was vital for New Zealand's continued skill development and economic stability.
Both personally support relaxing the criteria on access to allowances, and increasing the weekly maximum able to be borrowed for living expenses via student loans.
Both also support student loans remaining interest-free. Earlier this year, National about-faced on its earlier
Student loansCan be used to pay tuition fees; course-related expenses such as books, field trips and laptops; and living expenses of up to $150 per week (excluding tertiary institution holidays).
There is no limit to the amount of money which can be borrowed annually as long as expenditure is supported by receipts.
Loans are available to New Zealand citizens, permanent residents or refugees studying in New Zealand and to those enrolled in overseas courses approved by the Tertiary Education Commission.
Loans have been interest-free since April 1, 2006.
Since student loans were introduced in 1992, 712,405 people have used the scheme, representing about 22% of New Zealand's population aged 15 and over.
As at June 30 last year, 499,259 people had student loans and collectively owed $9.4 billion. About half owed $11,000 or less.
Repayment is compulsory once people earn more than $17,784 a year. (The threshold changes each April). People can also make voluntary repayments.
Half of those with loans can expect to repay their loan within six years of graduation; 25% of people will take more than 11 years.
Repayment times have been about the same for men and women since loans became
interest-free.
Some students are eligible for a government benefit towards living expenses and may also receive an additional accommodation benefit. Benefits can reach $210 a week during the academic year.
Student allowances do not have to be repaid.
Students under 25 are deemed to be supported by their parents and are ineligible for allowances unless their parents' annual income is below $69,081 (for a student living at home) and $75,270 (for a student living away from home).
Students earning more than $180 a week during the academic year are ineligible for allowances.
Students living with a partner are classed as single and still deemed to be supported by their parents.
Students with children may be eligible for an allowance.
As of June 30 last year, about 38% of students received allowances. The average weekly payment was $143.
Source: The 2007 Student Loan Scheme annual report, and other government statistics
