Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

$30 Million Interest Written Off Student Loans

27 May 2001

Around 60,000 student loan borrowers will receive statements over the next seven days detailing their share of a $30 million student loan interest write-off, Associate Education (Tertiary Education) Minister Steve Maharey said today.

The letters from Inland Revenue confirm the first interest write-offs to occur under the 'no-interest-while-studying' policy introduced by the Labour-Alliance Government.

These are the first interest write-offs to occur this year and will apply to students who studied full-time last year. Part-time low-income students (those earning under $24,596 for the year to 31 March 2001) are also eligible and will receive their write-offs in June. Over the course of this week Inland Revenue expects to advise 60,000 students who studied full-time last year that they have saved up to $30 million in interest charges. For a borrower with the average student loan of $12,883 this will mean a write-off of approximately $900 in interest charges which would otherwise have been added to their loan. Actual figures for full-time students will be available in June.

Mr Maharey said the interest write-offs fulfil a key election pledge.

"Student debt got out of control over the 1990s and was a major election issue. The 'no-interest-while-studying' policy stops student debt spiralling out of control.

"Too many students found themselves paying back the interest which accumulated on their loan without ever reducing their loan principal.

"All student loan borrowers will start receiving statements from Inland Revenue on Monday 28 May and the mailing will be completed by Thursday 31 May.

"There is no time limit to apply for an interest write-off if you are eligible. If you haven't provided Inland Revenue with your correct details or you forgot to apply you can do so at any stage in the future simply by contacting the Department. You can also use Inland Revenue’s website to do this at www.ird.govt.nz

"Eligible part-time students will have their interest written off in late June following confirmation by Inland Revenue of their income last year. Approximately 20,000 part-time students have applied for an interest write-off to date," Steve Maharey said.


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

New Reports: Flood Risk From Rain And Sea Under Climate Change

One report looks at what would happen when rivers are flooded by heavy rain and storms, while the other examines flooding exposure in coastal and harbour areas and how that might change with sea-level rise.

Their findings show that across the country almost 700,000 people and 411,516 buildings worth $135 billion are presently exposed to river flooding in the event of extreme weather events...

There is near certainty that the sea will rise 20-30 cm by 2040. By the end of the century, depending on whether global greenhouse gas emissions are reduced, it could rise by between 0.5 to 1.1 m, which could add an additional 116,000 people exposed to extreme coastal storm flooding. More>>

ALSO:

 
 

Gordon Campbell: On The Commerce Commission Fuel Report

The interim Commerce Commission report on the fuel industry will do nothing to endear the major oil companies to the New Zealand public... More>>

ALSO:

Emergency Govt Bill: Overriding Local Licensing For The Rugby

“It’s pretty clear some clubs are having difficulty persuading their district licensing committees to grant a special licence to extend their hours for this obviously special event, and so it makes sense for Parliament to allow clubs to meet a community desire." More>>

ALSO:

Leaving Contract Early: KiwiBuild Programme Losing Another Top Boss

Ms O'Sullivan began a six-month contract as head of KiwiBuild Commercial in February, but the Housing Ministry has confirmed she has resigned and will depart a month early to take up a new job. More>>

ALSO:

Proposed National Policy Statement: Helping Our Cities Grow Up And Out

“We need a new approach to planning that allows our cities to grow up, especially in city centres and around transport connections. We also have to allow cities to expand in a way that protects our special heritage areas, the natural environment and highly productive land." More>>

ALSO:

Ombudsman's Report: Ngāpuhi Elder 'Shocked' By Conditions At Ngawha Prison

A prominent Ngāpuhi elder is shocked to find inmates at Ngawha Prison are denied water and forced to relieve themselves in the exercise yard... Chief Ombudsman Peter Boshier has released a report highly critical of conditions at the Northland prison. More>>

ALSO:

Promises: Independent Election Policy Costing Unit A Step Closer

The creation of an entity to provide political parties with independent and non-partisan policy costings is a step closer today, according to Finance Minister Grant Robertson and Associate Finance Minister James Shaw. More>>

ALSO:

School's In: Primary And Intermediate Principals Accept New Offer

Primary and intermediate school principals have voted to accept a new settlement from the Ministry of Education, which includes entrenched pay parity with secondary principals. More>>

ALSO:

IPCA On 'Rawshark' Investigation: Multiple Police Failings In Hager Searches Confirmed

The Independent Police Conduct Authority has found that the Police's unlawful search of Nicky Hager's property in October 2014 resulted from an unwitting neglect of duty and did not amount to misconduct by any individual officer... More>>

ALSO:

Broadcasting Standards: Decisions On Coverage Of Mosque Attacks

The Authority upheld one of these complaints, finding that the use of extensive excerpts from the alleged attacker’s livestream video on Sky News New Zealand had the potential to cause significant distress to audiences in New Zealand, and particularly to the family and friends of victims, and the wider Muslim community. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels