Cross-strategy indicators – Tertiary Education Strategy monitoring 2009

8. Affordability of tertiary education

Affordability to students and families

Average tuition fees at public providers have remained stable relative to wages over the last four years. This is a result of the policy to limit the maximum fee that can be charged for courses.

The highest fees are at universities, followed by institutes of technology and polytechnics.

The low average fees at wānanga reflect the high proportion of courses offered with zero or low fees.

Figure 8.1: Average tuition fee per EFTS expressed as a ratio of average weekly income in public providers

Source: Ministry of Education, Tertiary Education Commission and Statistics New Zealand, New Zealand Income Survey.

The average annual tuition fee for bachelors degrees and above in New Zealand in 2004/05 was US$2,671. This compares with US$3,855 in Australia, US$3,464 in Canada and US$5,027 in the United States.

Source: Organisation for Economic Cooperation and Development, Education at a glance 2008.

Over the last five years there has been moderate growth in the real value of the average student loan balance.

The number of people with student loan balances continues to increase as more people participate in tertiary education.

Figure 8.2: Average student loan balance and number of borrowers

Source: Inland Revenue.
Note: Loan balances for 2008 exclude accrued interest.
 

Affordability to the country

Real government expenditure on tertiary education has grown steadily since 2003.

The peak in 2006/07 relates to one-off costs associated with the introduction of interest-free student loans.

Figure 8.3: Real government expenditure on tertiary education

New Zealand’s expenditure on tertiary education provision as a proportion of GDP is slightly above the OECD average and similar to that of Australia, Sweden and Finland.

Figure 8.4: Expenditure on post-school educational institutions as a percentage of GDP for selected countries 2004

Source: Organisation for Economic Cooperation and Development, Education at a glance 2008.
Note: Includes both public and private sources of expenditure.