Labour finally strikes a blow at the student debt monster

If implemented, Labour's tertiary student support policy, including the introduction of no interest on loans while borrowers are in New Zealand, would be the most significant blow to the $7 billion debt monster since the student loan scheme was introduced in 1992.

“The interest on student loans has been crippling graduates and their families for over a decade. No interest on loans while borrowers are in New Zealand would be a fantastic improvement,” said Camilla Belich, Co-President of the New Zealand University Students’ Association (NZUSA).

“Students and their families will also appreciate Labour’s commitment to ensure half of all students are entitled to a living allowance. We hope that this will be the first step towards the goal of a living allowance for all students,” Belich said.

“Students have been waiting a long time for genuine improvements to the loan scheme, however students will be disappointed that there is still no commitment from Labour to reduce high tertiary fees,” said Andrew Kirton, Co-President of NZUSA.

“With this policy Labour is attacking student debt, promising to increase student allowances and control excessive fee growth. Comprehensive and bold policies such as this are necessary in starting to deal with the student debt monster,” said Kirton

“All major political parties have now released their policies for students and all recognise that the current $7 billion indebted to a generation is too much to swallow. The fact that there is a multi-party desire to improve the situation for students is a testament to the tough campaign fought by students over the last decade,” said Kirton.

ENDS