27 February 2001

Student Loan Interest Rate To Remain Unchanged - Steve Maharey

The headline interest rate for the student loan scheme is to remain at 7% following the Government's decision to adopt a new rate setting formula, Associate Education Minister (Tertiary) Steve Maharey announced today.

Mr Maharey also announced adjustments to the thresholds of the student loan scheme. The repayment threshold will rise from $14,678 to $15,132, and the income threshold at which part-time students receive a full interest write-off will rise from $24,596 to $25,073.

"The Government has acted to keep the costs of the loan scheme down.

"The 2001/02 tax year headline interest rate is the first set under a new formula which has arisen out of the student loan interest rate review. Under the previous formula the interest rate would have risen to 7.9%.

"That equates to a saving of up to $180 per year in interest charges for a borrower with a $20,000 debt.

"The headline interest rate is the highest rate that borrowers can possibly pay. However less than 20% of borrowers actually face the headline rate.

"Under changes introduced by this Government, most borrowers qualify for full or partial interest write offs depending on their level of income, the size of their debt and whether they are full or part-time students.

"The average interest rate actually faced by borrowers is estimated at 3%," Steve Maharey said.

© Scoop Media

Gordon Campbell: On the Sony cyber attack

Given the layers of meta-irony involved, the saga of the Sony cyber attack seemed at the outset more like a snarky European art film than a popcorn entry at the multiplex.

Yet now with (a) President Barack Obama weighing in on the side of artistic freedom and calling for the US to make a ‘proportionate response’quickly followed by (b) North Korea’s entire Internet service going down, and with both these events being followed by (c) Sony deciding to backtrack and release The Interview film that had made it a target for the dastardly North Koreans in the first place, then ay caramba…the whole world will now be watching how this affair pans out. More>>