Interest On Student Debt Amasses At $410,000 Daily
Interest On Student Debt Amasses At $410,000 Net Per Day
The Aotearoa Tertiary Students Association (ATSA) is bitterly disappointed at today’s announcement by Government that the student loan interest rate will remain at seven percent for the next year. Figures released today by ATSA show that under the current seven percent rate students are collectively amassing nearly half a million dollars per day in interest on student loans.
“ATSA is appalled at the rate Student Loan interest is increasing the burden on students, families and communities in New Zealand. A conservative estimate is that the total interest on student loans is increasing overall debt by over $415,000 dollars per day," stated ATSA President Julie Pettett. “This is despite the government’s much touted policy of interest write-offs for current students and low income earners.”
"The decision by government to persist with an interest rate of seven percent shows that they are not facing up to the reality of the problems they are creating. The 'debt' from interest on Student Loans is destined to cripple our country. It is time for politicians and policy makers to own up to getting it wrong and begin to address the issue."
"Lots of New Zealanders have a dream of winning a million dollars on Lotto," said Pettett. "The government is winning that amount every 2.5 days from the interest on student debt! They are placing an unprecedented burden on the youth of today, their families and communities.
"A truly horrifying fact is that this student debt is already out of control. If the debt is not manageable now, what will it be like when it is growing at $1 million each day? Or $2 million each day?”
“Will the current Labour Government be remembered as the government that perpetuated a "generation of debt" or as the government with the courage and conviction to address this serious social issue?” asked Pettett. “ATSA hopes for the latter – and believes voters will give Labour that message at this year’s election."