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

 


Increase in inflation adjustment rate bad news

Forty seven percent increase in inflation adjustment rate bad news for students

The Aotearoa Tertiary Students' Association (ATSA) notes that the reduction in the base interest rate (from 5.1% to 4.2%) means that debtors to the Student Loan Scheme eligible for base interest right-offs will face increases in their total debt burden.

"While students may have some cause for slight satisfaction that the government continues to maintain the total student loan interest rate at seven percent, the balancing of the base and interest adjustment rates to maintain this 'headline rate' is unsatisfactory, and hides one of the real faults of the student loan scheme," ATSA President Julie Pettett sated today. "What it means to student loan borrowers on low incomes is that they will have a smaller amount written off their interest than was formerly the case."

ATSA suggests that 47 percent increase in the CPI (from 1.9% to 2.8%) used to calculate the 'interest adjustment rate' should be used to adjust the repayment thresholds which trigger base interest right offs. "This would help signal to borrowers that the government was genuinely interested in reducing the debt burden imposed on students, their families and the community," Pettett stated. "In the case of this latest change, it would increase the repayment threshold from $15,964 to $23,467. This is still well below the average wage, but would help to reduce the actual cost increases that low income borrowers now face because of base interest rate reduction."

ATSA expects that real movements towards reducing the costs of tertiary education to students will be offered in the government's review of student financial support "This latest change in the interest rate calculations illustrates some of the absurd contradictions in the current scheme," Pettett concluded.

© 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