Debt-Free Futures Open Letter

DEBT FREE FUTURE OPEN LETTER TO MEMBERS OF PARLIAMENT

To the Members of Parliament of Aotearoa New Zealand,
We, the elected representatives of students are asking you, the elected representatives of the people of Aotearoa New Zealand, to work together to create a Debt Free Future for all tertiary learners.

Our vision is for an Aotearoa New Zealand free of debt accrued by our tertiary students; where everyone has access to free tertiary education; where we resource all students to eliminate poverty within the community; and where we have eliminated the more than $16.3bn of debt accrued by students.

Our country has a rich history of free tertiary education, for 121 years until it was taken from us in 1990. Prime Minister Jacinda Ardern stated that “education is the greatest enabler in society”, and after lobbying from students and supporters across the motu, in 2017 we secured a promise of 3 years Fees Free; but in 2020 the Government broke its promise to extend the policy and took this opportunity, this right, from learners.

OUR ASK.

We want a free and accessible education system from end to end.

We accept that sustainable change can be incremental, and therefore ask that the following steps towards a Debt Free Future are immediately taken:

Implementation of the rest of the 3 years Fees Free. We would like to see this as an efts-based system to account for part time learners and those on limited full time study pathways.

Implement free Taught Postgraduate Degrees. Lincoln University instigated this initiative in 2020 and saw a significant increase in enrolments. We need to enable our workforce to be lifelong learners and supported to take opportunities to upskill and be flexible in the labour market. This would be a first step towards an end-to-end fees free tertiary education system.

Increase to the income repayment threshold. We need to let our learners keep more of their incomes before having to pay back their loans. This repayment is an additional 12% tax on any income above $20,000 per anum or if you earn over $385 per week. This holds back students from saving for their next semester of study. This holds back students from saving from a home deposit. This is a handbrake on our economy.

Implement the recommendations of the People’s Inquiry into Student Wellbeing, particularly a Universal Education Income. Students’ access to financial support should not depend on their parental income level, or how well that is hidden, or an age that the state determines they are no longer supported by their parents. Allowances should be universal and apply regardless of age or level of study.

WHY A DEBT FREE FUTURE?

Our situation

We believe that equal access to education is a public right. Māori and Pasifika learners take longer than Pākehā learners to pay off their loans. We expect that every person who wants to access tertiary education must be afforded this opportunity free from financial limitations.

Aotearoa New Zealand is entrapped in a cost-of-living crisis. We know that these crises affect our lowest income earners the most, and students certainly fit into this group. Students are also almost entirely dependent on the state for their incomes. The state therefore has a responsibility to ensure our students are afforded the support to live and study rather than spend their time looking for work to afford their rent.

The $16.3 billion of debt accrued by learners is a handbrake on our country’s economic future and this has only existed since 1990. At 30,000 debt per learner, repayment is charged at an extra tax 12% rate that our learners are burdened with despite education being regarded as an important investment in society and a necessary tool for securing our future.

Being a world leader?

Internationally there has been a move to acknowledging the importance of free education. Germany, Sweden, Finland, Denmark, and France have free, or nominal fees for students studying across the education levels. The USA debt forgiveness programme of $10,000 has been rolled out to debtors who earn less than $125,000 (ish) per year. This was to take off immediate financial burdens reflecting the cost-of living crisis in the USA.

Kind regards and ngā mihi nui,

Debt Free Future Aotearoa

Contact:

Sam Blackmore, vp@students.org.nz

Ralph Zambrano, president@vuwsa.org.nz

List of signatories (alphabetical):

• Albany Students’ Association

• Auckland University of Technology Students’ Association

• Auckland University Students’ Association

• Disabled Students’ Association, Victoria University of Wellington

• Lincoln University Students’ Association

• Ngā Rangahautira, Māori Law Students’ Association, Victoria University of Wellington

• Ngāi Tauira, Te Herenga Waka, Victoria University of Wellington, Maōri Students’

Association

• National Disabled Students’ Association

• Massey at Wellington Students’ Association

• Massey University Students’ Association

• Massey University Pasifika Students’ Association

• New Zealand Union of Students’ Associations

• Otago University Students’ Association

• Pasifika Students’ Council, Victoria University of Wellington

• Postgraduate Students’ Association of Victoria University of Wellington

• Student Association of Nelson-Marlborough Institute of Technology Incorporated

• Student Association of WINTEC

• STUDiO, Victoria University of Wellington

• University of Canterbury Students’ Association

• Tauira Pasifika

• Te Mana Ākonga

• Thursdays in Black Aotearoa

• UniQ Victoria

• Victoria University of Wellington Students’ Association

• Victoria University of Wellington Asian Law Students’ Association

• Victoria University of Wellington International Students’ Association

• Younited Students’ Association