NZ student loan interest rate highest
9 September 2005
NZ student loan interest rate highest in the OECD – new report
A comparative report released this month by independent worldwide education organisation the Educational Policy Institute, Global Debt Patterns: An international comparison of student loan burdens and repayment conditions, has exposed New Zealand as having the highest interest rate on student loans out of eight comparable OECD countries looked at in the report.
“Students, graduates and their families have known for years that the interest charged on student loans was a considerable burden,” said Camilla Belich, Co-president of the New Zealand University Students’ Association (NZUSA).
“The very high 7% interest rate has now been exposed as being abnormally and unreasonably high even in an international context.”
“The focus by political parties this election on the student loan interest rate is long overdue,” said Belich.
“Labour’s policy of 0% student loan interest would make New Zealand one of the lowest in the OECD, whilst National’s plan would see New Zealand remain charging the highest student loan interest rate in the developed world,” said Andrew Kirton, Co-president of NZUSA.
“This report proves that New Zealand students and graduates deserve a fairer loan scheme and this must be seriously addressed by whoever forms the next Government,” said Kirton.
A copy of the report can be found at: www.educationalpolicy.org/pdf/Global_Debt_Patterns.pdf