Student loan debt ‘balloons’ by 37 per cent, with average student owing $21,000

Student loan debt ‘balloons’ by 37 per cent, with average student owing $21,000

The average student has nearly $21,000 of debt, with the nominal value of student loan balances sitting at $15.3 billion. Photo / File

Interest-free student loans – a mistake?

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“Participation in tertiary education peaked in and has been steadily declining ever since as the effects of a National Government bed in,” he said.

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“Meanwhile the accumulated debt of those who do complete tertiary study has been climbing steadily, increasing a whopping 37 per cent under National compared to just 9 per cent under the previous Labour Government.”

The average loan balance at June 30 was close to $21,000, the report said, while the average time it takes a graduate to repay their loan is now 8.4 years.

Record amounts of student debt are being written off for bankruptcy, with $17.6m wiped from the books in the 2015-16 year. Continue Reading →