Govt needs to come clean on student loan interest

new-zealand-labour-party

Mon May 11 2009 12:00:00 GMT+1200 (New Zealand Standard Time)

Govt needs to come clean on student loan interest

Monday, 11 May 2009, 10:18 am
Press Release: New Zealand Labour Party

Government needs to come clean on interest on student loans

The National-led Government needs to come clean on whether it is planning to change the interest free student loan system, in the light of fresh speculation about its intentions, said Labour’s Tertiary Education Spokesperson, Maryan Street.

A report this week in the well-informed Trans Tasman newsletter suggests the Budget will “reintroduce some level of interest rate on student loans.” Trans Tasman says the Government “regards the multi-billion dollar student loans book as a key risk to the Crown accounts,” in light of the growing number of students enrolling because of the recession.

“This is particularly alarming given the Education Minister’s refusal to clarify the issue when challenged in Parliament during the first reading of the Government’s Student Loan Repayment Bonus legislation,” said Maryan Street.

“The Education Minister, Finance Minister or Prime Minister need to confirm whether Trans Tasman is right, because National has previously pledged to retain the interest-free scheme.

“During the first reading debate on the Repayment Bonus legislation, I said that it would only make financial sense for students to repay more of their loan early if the Government was intending to reintroduce interest on student loans. Anne Tolley refused to clarify the Government’s intentions at that time.

“Not only would the reintroduction of interest on student loans be a significant broken promise, it would penalise students at the very time when they are trying to get ahead and improve their skills in a difficult job market,” Maryan Street said.

ENDS

Advertisement - scroll to continue reading

a.supporter:hover {background:#EC4438!important;} @media screen and (max-width: 480px) { #byline-block div.byline-block {padding-right:16px;}}

Using Scoop for work?

Scoop is free for personal use, but you’ll need a licence for work use. This is part of our Ethical Paywall and how we fund Scoop. Join today with plans starting from less than $3 per week, plus gain access to exclusive Pro features.

Join Pro Individual Find out more

Find more from New Zealand Labour Party on InfoPages.