Destructive impact of student loans

5 November 2004

Government research confirms destructive impact of student loans

Student loans are ‘constricting the future potential of graduates’ and forcing graduates to leave New Zealand, delay home ownership and put off having children according to new research conducted by AC Nielsen on behalf of Study Link and the Inland Revenue Department.

“This research is the first piece of Government research that confirms what students, demographers and economists have been saying for years: student debt is wreaking havoc with our society and economy,” said Fleur Fitzsimons, Co-President of the New Zealand University Students’ Association (NZUSA).

“The government can no longer deny the devastating impact of student debt on home ownerships rates and the ability of the country to meet workforce demands.”

“The link between student debt levels and New Zealand’s social and economic future is very clear: government must act urgently to reduce students reliance on the harsh Student Loan Scheme.”

“Fee increases throughout the country mean that the social and economic problems associated with debt are only going to get worse,” said Fitzsimons.

“If government is interested in answers to the student debt crisis: they should listen to students and their families and scrap student fees and introduce a living allowance for all students.”

ENDS

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