New Zealand’s collective student debt is approaching NZ$10 billion!!

Lets take a look at the cost of living for a student in Dunedin per week and get an idea of how crappy this situation is.

Weekly cost of living

Rent = $100 p/w

Energy, Internet and telephone = $75 p/w

Health = $20 p/w

Food = $100 p/w

Car = $80 p/w

Furnishings = $20 p/w

Clothing = $20 p/w

Social = $50 p/w

3 trips home per year = $30 p/w

Savings = $50 p/w

Stationary, computing and text books = $30 p/w

Student fees = $50 p/w + 40 hours p/w

TOTAL COST OF LIVING PER WEEK = $625 per week

Weekly income

Student allowance (if eligible) = $150 p/w

20 hours casual work @ $12 minimum per hour (resulting in a 60 hour week when combined with study time) = $240 p/w

TOTAL INCOME PER WEEK = $390 p/w (Gross!)

Weekly short fall of $235 per week. Totaling $12220 annually!!

So, let’s drop the car and savings… weekly short fall now = $105. Totaling $5460 short fall annually.

I guess we could keep chipping away at some of those weekly expenses.. who needs a social life, or trips home (or away), or health… and I guess they could work harder than 60 hours per week, or sacrifice some of that study time to work more, or find a job during the semester breaks to pay back some of that short fall (provided your landlord, food market, and all the others can stomach giving you credit until then. What about student fees? Let’s take a look at that…

Looking at student fee in relation to cost of course

A 3 year course at $12000.. what is the cost of running a course for 16 people per year? (Class sizes are one of the big reasons you would study at a Polytechnic btw.. imagine 350 people or more in a class, I struggle to see the value in university fees..)

Teacher @ $60 p/hr x 20 hrs p/w x 40 weeks = $48000 per year

Classroom and amenities = $4000 p/y

Internet and 16 computers = $32000 p/y

Other specialist learning resource fittings = $6000 p/y

Administration = $4000 p/y

Library = $6000 p/y

SUBTOTAL ANNUAL COURSE COSTS = $100 000

Less Government subsidy of around 70 – 80% = $30 000

Divided between 16 students = $1875 That’s less than half their fee!
(that subsidy figure needs checking.. it is really had to find)

Now, if we consider that in the breakdown of weekly student living costs – included in that is a computer and Internet. That might suggest that we could scale back our provision of such things (ignoring for now the fact that most students probably choose to forgo that cost in their struggle to survive here) and reduce the cost of the course considerably further (especially if I am out with that subsidy and course cost estimate).

But students would still be being forced into debt.

So what could we do in the way of free learning, fee education to afford more flexibility – save another $40 per week? And what could we do with other Government grant money to provide computers and Internet at affordable prices for students – save another $50 p/w? And what could we do with Open Educational Resources to reduce text books and library costs – save another $20 p/w? And what could we do with distance education so as to offer options for avoiding Dunedin costs of living – save another $100 p/w?

I don’t think we are thinking hard enough on what we can be doing to help address this serious social problem affecting the quality of learning in NZ. We have students who have little choice but to study and work 60 hour weeks, racking up and worrying about debt, and/or reducing their standard of living well below what I would call acceptable. I dare anyone to take a tour of rental properties in Dunedin.