Labour have just announced
The Government will scrap interest payments on student loans held by people living in New Zealand, Prime Minister Helen Clark announced today.
She said the proposed change, which would begin on April 1 next year, would massively reduce loan repayment times.
The policy would cost $100 million in its first year, eventually rising to $300 million a year.
Miss Clark said the policy would form the second of Labour's seven pledge card election promises.
Labour's first pledge card promise is to widen the rates rebate scheme
I am a student who has just taken out a SL for course fees and I don't agree with this at all. The current system is perfectly fair with regards to course fees. I don't have to pay any interest while studying and after I stop studying I get charged interest at a low rate, plus the government already funds universities about 60%. Yes their is still an expense to studying but with regards to course fees the government is already investing thousands of dollars into each degree earned.
This new measure only benefits students after they stop studying (as they pay no interest while studying anyway). Surely the time to help them is while studying by paying a universal student allowance. I have said before and I will say it again I don't believe any government should LOAN money for living expenses.
Remove the ability to borrow for living expenses, pay a universal student allowance and keep interest on course fees once the borrower has finished studying