Tuesday, July 26, 2005

Labour to cut student loan interest

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


Danica said...

I think that there's only a few blogs here which are worth reading, and yours is one of them..Keep

Karen said...

I'm telling Sarah on you!!!!

Naughty boy. What can I say - I got a great laugh thanks.

Love K & M

Ernie said...

Obviously it will be interesting to see who wears that kind of bribery. I think it is irresponsible to offer it.

I have heard here and there that many students don't agree with it which surprised me to an extent.

To be eligible a student must make a commitment to remain in NZ perhaps missing the best years of their life by undertaking an OE. If they are worried about the brain drain surely there are alternatives to this.

While National's policy did not dangle a mighty huge carrot it appeared fiscally prudent. What is it the student's really want? A free education comes to mind. Gone are the days when you get something for nothing.

It smacks of desperation. Will it work. Time will tell.

andrew brown said...

don't forget that 6 years ago labour promised that they'd match payments dollar for dollar for student loans when the loanee payed more than the minimum, but what did labour do?

they just didn't even do it.

i can't stand helen