More students borrowing than ever before

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More students are borrowing to pay for their study with 2009 seeing the largest increase since the student loan scheme started.

The number of students borrowing rose by 11.3 percent to 198,723 in 2009, an increase of 20,211 from 2008, according to figures released by Statistics New Zealand (SNZ) today.

The number of students receiving an allowance grew by 25.4 percent to reach 80,703, the largest increase since 1999.

2009 also saw the largest increase in new borrowers with 61,269 people taking up the scheme for the first time.

The amount students were borrowing also increased, with the average amount borrowed per year rising 0.6 percent to $6990 in 2009 compared to $6950 in 2008.

The increase in the number of loans and allowances was a by-product of the recession which resulted in more tertiary enrolments, SNZ employment statistics manager Guido Stark said

"The recession has also affected students entering the workforce in 2009, with average first year earnings falling for the first time since the Asian crisis and most noticeably affecting males and young people leaving study," Mr Stark said.

The average income for students one year after leaving study was down 2.5 percent to $30,320 from $31,100 in the previous year.

- NZPA