Potential Fee rises concern students
Student leaders today are concerned at further fee rises that have been signalled in the release of the Government’s Draft Tertiary Education Strategy.
“Students faced massive fee increases in the 1990s when there was similar ‘flexibility’ on the issue of fees, as outlined in this new Tertiary Education Strategy. These significant increases, some up to 30 percent in one year, greatly increased the level of student debt that students and graduates now collectively owe,” said Sophia Blair, Co-President of the New Zealand Union of Students’ Associations.
“At a time when youth unemployment is at a whopping sixteen percent and the Government is attempting to encourage more people into education, fee increases will act as major disincentives to young people wanting to head into tertiary education and will add to the already high levels of student debt in this country,” said Blair.
Just recently, the Ministry of Education reported favourably on the current fee maxima policy, stating “The general affordability of tuition fees improved under the fee stabilisation policy and has since been maintained by the FCCM policy” and that “Increases in domestic tuition fees have been lower under the Fee and Course Costs Maxima (FCCM) policy than in the unregulated environment during the 1990s.”
“The Government is clearly worried about the increasing loan debt of students, as evidenced by the recent voluntary repayment bonuses Bill they introduced, yet these changes signalled in today’s release of the Strategy contradict these efforts and create a no win situation where the Government will still have to worry about the sizeable loan balance on the Crown books” said Blair.
“There is a saying that if a person is debt adverse, they are education adverse. Research has shown that people from lower-socio economic groups are more debt adverse and thus, in light of the Draft Tertiary Strategy’s noble aims of increasing the participation of lower socio economic groups, the consequences of proposed Government policies will completely undermine this” concludes Blair.
ENDS