Tertiary students are being hit hard by the recession, with fewer jobs and higher costs meaning many struggling to make ends meet, new research says.
The 2010 Income and Expenditure Survey, released today by the New Zealand Union of Students' Associations (NZUSA) today, found the average student loan debt had risen by 31 percent since 2001 to $15,558.
"As another decade of debt is piled onto a new generation, students have little to celebrate as they head into a new academic year," NZUSA co-president David Do said.
The median amount borrowed per student was $12,000, while the median amount paid back per year was $5400 - increases of 41 and 42 percent respectively.
Over the past three years, the number of students relying on loans to pay tuition fees had risen by 8 percent.
Mr Do said that indicated many students had found it increasingly difficult to save.
"Students appear to have borne the brunt of recent high unemployment. Our research shows a massive drop in students doing regular or casual work during the academic year, from 90 percent in 2007 to just 65 percent," he said.
The study found 58 percent of students were stressed about their financial situation and its impact on their studies.
The economic situation appeared to be particularly difficult for student parents, with numbers dropping from 19 percent of the student population in 2007 to 8 percent in 2010.
"It is likely that the tight job market, a huge 30 percent jump in median childcare costs from $35 to $50 per week, and cuts to the Training Incentive Allowance have increased barriers to entry," NZUSA co-president Max Hardy said.
Ninety percent of students were found to support interest-free loans.
Those surveyed said a student loan hindered their ability to buy a house, go overseas and save for the future.
"Interest-free student loans enjoy across the board support and are now an untouchable policy. The policy has been instrumental in reducing the barriers to education and the burden of debt falling on graduates," Mr Hardy said.
NZPA