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PM guarantees interest free loans will stay

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

PM guarantees interest free loans will stay

NZUSA - New Zealand Union of Students' Associations Tuesday, 12 May 2009, 10:47 am
Press Release: New Zealand Union of Students Associations

Prime Minister guarantees interest free loans will stay

Student leaders are relieved at Prime Minister John Key’s guarantee that interest-free student loans are here to stay.

“We welcome the Prime Minister’s decisive statement clarifying that the interest-free student loan policy will remain”, said Jordan King, Co-President of the New Zealand Union of Students’ Associations (NZUSA).

John Key confirmed National’s position on Breakfast television yesterday, stating the level of interest applied to student loans would remain at zero percent, after speculation had surfaced in recent weeks that National may reverse the 2005 policy decision to remove interest on loans and move to interest-bearing loans for higher education.

“The reintroduction of a policy of charging interest on student loans would have served a huge disincentive to study, creating a major barrier to education, and would have created a serious burden on borrowers who are already struggling in these tough economic times”, said King. “Obviously the Government have recognised this and are instead committed to easing the debt burden on students and graduates”, said King.

“National has clearly understood the ramifications of interest-bearing loans, and now a focus on managing the debt and addressing the causes of these loans in the first place is what is needed,” said King. “The upcoming Budget is an ideal and timely opportunity to initiate such a plan and we look forward to the Government announcing positive policies in these areas”, concluded King.

ENDS

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NZUSA - New Zealand Union of Students' Associations

NZUSA - New Zealand Union of Students' Associations

We stand for opportunity, for all.

NZUSA is the New Zealand Union of Students' Associations, the national body that represents New Zealand's students' associations and the interests of New Zealand's 400,000 students at universities, polytechnics and in trades training.

We conduct original research, advocate to Government and through the media, and support New Zealand's students' associations to be more effective on behalf of their members. We advocate alongside Te Mana Akonga – The National Māori Students' Association, and Tertiary Women New Zealand – The NZUSA Women's Caucus.

Since 1929, we've believed in a society rich in opportunity, where anyone from anywhere can become any thing. We support accessible, affordable quality public tertiary education.

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