Labour misleading and simply irresponsible
“Tertiary students are being misled by Labour. Labour would rather encourage students to borrow more. They are simply not interested in easing the level of student debt,” said National’s Youth Vice President Daniel Gordon responding to Labour’s Tertiary education policy announced yesterday.
“National wants to reduce student debt. We have practical measures in place, which will cut student debt by almost a quarter by 2024. I can’t even start to imagine the massive student debt that would accumulate if Labour was allowed to unleash its irresponsible ‘spend up large - worry about it later’ loans policy.
“Interest free loans during studying will mean students who don’t even need to borrow will draw down the maximum entitlement. The number of students with a loan – currently less than half – will soar.”
“As National’s Belinda Vernon rightly pointed out this morning, Labour promises not to charge base interest for those earning less than $25,000, but they will charge the interest adjustment rate. As soon as students stop studying, an inflation adjustment component will kick in.”
Daniel Gordon reiterated his earlier remarks that Labour’s loans policy is dopey and worthy of no celebrations.
“The extra $750 million Labour is promising the tertiary sector over the next three years soaks up a lot of Labour’s credit card budget. I don’t know how they are going to fund further promises - yet to be announced - without more tax increases.”
He said NZUSA Spokesperson Karen Skinner and Young Labour President Moana Mackey should read the fine print of Labour’s pledge of no base interest for those earning under $25,000.
Daniel Gordon believes students can see through Labour’s electioneering. He said students know only too well that Labour’s so-called credit card pledges are simply not feasible.