Westpac’s Bittersweet Valentine to Students

Westpac’s Bittersweet Valentine to Students

“Students cannot help but be cynical over new plans from the Westpac Trust to offer graduates low interest rates for their loans” stated Aotearoa Tertiary Student Association President Keith Clark. This statement follows the Westpac Trust announcement of low interest loans for graduates to cover outstanding student debts.

“Westpac Trust does not have a great track record when it comes to supporting students in general. While looking attractive, $50 million is really a drop in the ocean compared to the $4 billion that is tied up in the loans scheme” advised Keith Clark.

“Studies show that once tertiary study has been completed that 90% of students stay with their banker for life. This is Westpac’s attempt to cream off the best credit risks from the government scheme” stated Keith Clark.

“None of this is Westpac’s fault” said Clark. Successive National and Labour Governments have mismanaged the student loans area from the start. Students have maintained that the interest rates charged on the student loans scheme have been exorbitant. If a commercial bank can offer these rates then government needs to rethink its entire current strategy.

ATSA urges that the Labour/Alliance Coalition move to discuss different options with students. Students are willing to talk at any time to reduce the debt burden.

ENDS

For Further Comment Contact:
Keith Clark, ATSA National President
Cell phone 025 756 526

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