Consumer Price Index figures released this week show the cost of tertiary education recording its highest rise since at least 2004. Figures from the Statistics New Zealand website, which extend back to 2004 show that the cost of tertiary education rose this year by 6.4 percent. That is the same amount that the cost of tertiary education rose last year. Prior to that Statistics New Zealand only recorded rises of less than 5 percent. The current annual maximum fee movement, as legislated by the government, is 4 percent except for courses that have fees of less than $444 per year.

Statistics New Zealand records that the education group (including early childhood and compulsory education as well as tertiary education) rose 5.7 percent in the March 2011 quarter, the largest quarterly increase since a 7.7 percent rise in the March 2000 quarter.

It notes that higher tertiary education fees made the most significant contribution to the rise reflecting higher course fees, higher compulsory charges set by the universities, and the GST rise.

TEU national president Dr Sandra Grey says that sharply escalating fees are a result of government cuts.

“Treasury figures show that the government is putting less money into tertiary education every year for the next four years. Institutions are simply turning to their other sources of income. That’s what students have become – another source of income. The shame for students is that rapidly rising fees is no guarantee of better quality education because all their money is being used to patch holes in the system that the government is creating.”

“If fees keep rising we risk excluding some potential students from the opportunity to learn. The cost will put some off studying – especially when the government cuts down on the ability to borrow at the same time.”