Lower Interest Rates From Banks Than Loan Scheme
Lower interest rates from banks than student loan scheme
Today's announcement that student loan interest rates will be held at seven percent shows that government is continuing its policy of charging graduates higher interest than commercial banks.
"A quick look at bank websites show that home loans are readily available with interest rates lower than seven percent," said Fleur Fitzsimons, Co-President of the New Zealand University Students' Association (NZUSA). "While we appreciate measures such as no interest while studying, its an outrage that so many borrowers are stuck paying market interest rates."
NZUSA currently has a claim before the Human Rights Commission that student loans are unfair to women, who pay more for their qualifications due to market interest rates.
"For graduates, student loan interest rates are at the heart of their problem with the unfair loan scheme. Many are working full time, making compulsory repayments and still see their loan get bigger."
"Being forced to borrow to live is bad enough, being hit with a seven percent interest rate on top of that means borrowers face decades of debt."