Education Policy | Post Primary | Preschool | Primary | Tertiary | Search

 


Government Hits Low Income Earners Again

The New Zealand University Students’ Association (NZUSA) is calling on the Government to explain the real impact of student loan policy after receiving documents released under the Official Information Act which show that low income or unemployed graduates will see their loans increase at a greater rate than in previous years.

“Steve Maharey trumpeted the fact that the overall interest rate was unchanged earlier this year,” said Andrew Campbell, NZUSA Co-President. “What he neglected to tell the public was that graduates who are unemployed, at home with children or in a low paid job will have less of their loan written off and will therefore face longer loan repayment times and increased loan debt”.

“We are very concerned that this change will be particularly bad for women graduates, who earn less than men and take time out of the workforce to have children. Women already take 27 years on average to pay off their loans – it could be even longer with these new rules”.

Cabinet papers released to NZUSA show that changes to the way student loan interest rates are calculated mean that some borrowers will only have interest written off at half the rate it was last year.

While the total rate was frozen at 7%, the balance of components within that debt has changed significantly. Last year, students below the repayment threshold and receiving 50/50 write offs had 6.1% of their interest written off. Students this year are only having 3.1% of their interest written off. This change is due to the higher inflation rate last year.

“Viewed alongside the recent changes to the Community Services Card it is clear that the Government is abandoning low income earners. The Government needs to reassess how interest is calculated to ensure that loans can be repaid quickly, and that policies to wipe interest for low income graduates actually write off the majority of their interest”.

Section of Cabinet paper on student loan interest calculations attached.

ENDS

© Scoop Media

 
 
 
 
 
Culture Headlines | Health Headlines | Education Headlines

 

Electronica: Restoring The World’s First Recorded Computer Music

University of Canterbury Distinguished Professor Jack Copeland and UC alumni and composer Jason Long have restored the earliest known recording of computer-generated music, created more than 65 years ago using programming techniques devised by Alan Turing. More>>

ALSO:

Scoop Review Of Books: Almost Getting Away With Murder

The Black Widow by Lee-Anne Cartier: Lee-Anne Cartier is the sister of the Christchurch man found to have been murdered by his wife, Helen Milner, after an initial assumption by police that his death, in 2009, was suicide. More>>

Howard Davis: Triple Echo - The Malevich/Reinhardt/Hotere Nexus

Howard Davis: The current juxtaposition of works by Ralph Hotere and Ad Reinhardt at Te Papa perfectly exemplifies Jean Michel Massing's preoccupation with the transmigration of imagery in a remarkable triple echo effect... More>>

Scoop Review Of Books: Nō Tāu Manawa

Vaughan Rapatahana responds to Fale Aitu | Spirit House by Tusiata Avi: "fa’afetai Tusiata, fa’afetai, / you’ve swerved & served us a masterclass corpus / through graft / of tears & fears..." More>>

9 Golds - 21 Medals: NZ Team Celebrates As Rio 2016 Paralympic Games Close

The entire New Zealand Paralympic Team, led by kiwi sprinter and double gold medallist Liam Malone as flag bearer, are on the bus to the Maracanã Stadium in Rio de Janeiro for the Closing Ceremony of the Rio 2016 Paralympic Games. There, they will celebrate the fantastic successes of the past 10 days. More>>

ALSO:

New Zealand Improv Festival: The Festival Of Moments To Return To The Capital

The eighth incarnation of the New Zealand Improv Festival comes to BATS Theatre this 4-8 October , with a stellar line-up of spontaneous theatre and instant comedy performed and directed by top improvisors from around New Zealand and the world. More>>

ALSO:

Get More From Scoop

 
 

LATEST HEADLINES

 
 
 
 
Education
Search Scoop  
 
 
Powered by Vodafone
NZ independent news