4 JULY 2008 - Queen Street was shut down for a second time today as students rallied against spiralling levels of student debt now totalling over $10 billion.

Although not quite as noisy as the 300-strong convoy of truckies protesting the controversial increase in road user charges earlier in the day, students were determined to have their voices heard - around 250 descending upon Queen Street to call on the Government to introduce a universal living allowance before the general election.

The students, including four furry debt monsters, marched up Queen Street chanting slogans such as: "Do a degree and what do you get? Debt, debt debt" and "Bring Back Bucks". They then rallied at Aotea Square where New Zealand Union of Students' Association (NZUSA) Co-President Paul Falloon addressed the crowd.

"Student debt isn't just a problem for students, it's a problem for all New Zealanders", said Falloon.

Mr Falloon said the protest marked the launch of NZUSA's new "Kiwi Bankrupt" campaign, which included sending mock "Anti-debt" bankcards to politicians and policy makers.

"Research has shown that debt levels are putting students off starting families, as well as negatively effecting home ownership rates, business start-up and retirement savings. Add to that the direct link between this debt to New Zealand's increasing brain drain, and you see how the loan scheme is bankrupting our society", he says.

More than 450 000 New Zealanders currently have a debt from the student loan scheme since its introduction in 1992. Mr Falloon says total debt is now growing at an alarming $1 billion every year.

"Lack of access to allowances and high tuition fees are the key contributors in driving students to debt. Instead of short-sighted approaches like targeted bonding schemes, we need the Government to take a long-term view of the benefits to the whole country. It's clear that the introduction of a universal living allowance would significantly reduce debt for individuals and families, and have positive effects on the economy, it's just smart banking", said Falloon.