Study: Students underestimating debt

Published: 2:26PM Monday August 31, 2009 Source: NZPA

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Students are underestimating the cost of tertiary study and are setting themselves up for a future of debt, a new study has found.

A Canterbury University PhD study which tracked 1232 final-year secondary school pupils through their first two years of university study found they overestimated their annual incomes as students, while underestimating the cost of living and studying, The Press reported.

Nearly half of the students said debt was a normal part of today's lifestyle.

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PhD student Steve Haultain says students were not fully aware of the cost of a student loan and the options available.

The school leavers estimated their average annual expenditure would be $12,209 - significantly less than the actual $19,610 - while expecting to receive an average annual income of $11,974, an over-estimation of about $5157.

Canterbury University Students' Association president Steve Jukes says students were losing their concept of debt.

"It's treated as being socially acceptable to be in debt and to not be concerned with that. It's a way of life."

The New Zealand Union of Students' Associations' debt counter puts total debt from the student loan scheme at more than $10.5 billion.

Secondary schools would have to include personal financial education in a revamped curriculum from next year.

Do you think it has become socially acceptable to be swapped in debt? Are you a student? Is it too easy to accumulate debt? Share your opinion on our message board below:

 

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  • Custard17 said on 2009-08-31 @ 21:08 NZDT: Report abusive post

    As a student myself, I believe that we are definitely living way beyond what our income is. Things are generally just more expensive & the student allowance is not applicable to many students as it's based on their parents income...

  • Lady77 said on 2009-08-31 @ 20:33 NZDT: Report abusive post

    Its 2 easy for kiwis to get themselves in trouble, as a mum I can't afford to have that debt while supporting kids, so it puts me off receiving any study and therefore it's harder to get a job. The government should look at funded or free tertiary study to get the high unemployment rate down and NZ poverty down. The current rate students are paying for education is ridiculous

  • fgomes said on 2009-08-31 @ 17:07 NZDT: Report abusive post

    Luckily for me, I did not take a student loan - plus there was the fact that i was an international student and had to pay international rates. But i do feel for those who have loan debts

  • nt said on 2009-08-31 @ 17:02 NZDT: Report abusive post

    I think the reason that students have accepted debt is because a large majority of us could not study without a student loan, so yes it is just a part of life, and we would be in constant stress if we let it worry us

  • radar832004 said on 2009-08-31 @ 16:31 NZDT: Report abusive post

    Its an outrage that the same people saying that free tertiary education is unaffordable are the same people that received free tertiary education!!! Its funny that it is okay for them but not Okay for today's students

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