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Labour Exacerbates Student Loan Crisis

An alarming $8 billion blow-out in projected student loan debt is yet another let down for students under the Labour Government, National's Youth Affairs spokesperson Simon Power said today.

Victoria University of Wellington Students' Association today released information obtained under the Official Information Act, which shows a blow out in projected student loan debt. Projected debt for 2020 has risen by $8 billion compared to forecasts in 1999.

"The Labour Party held itself out to be the party for students. They promised to reduce fees, reduce student debt and reintroduce the Emergency Unemployment Benefit.

"Students have been let down on all fronts by Steve Maharey and his colleagues.

"Student debt has continued to rise and is projected to blow out to $19.4 billion by the year 2020 - $8 billion more than was projected for 2020 in 1999.

"Students have not been given access to the Emergency Unemployment Benefit despite pre-election promises to do so.

"The Government is blackmailing universities to freeze fees despite evidence showing services will be cut to students and the quality of education will suffer if they agree to do so. The Government hasn't come up with the funds and students are being held to ransom.

"Labour's pre-election talk has been exposed as weasel words by their actions in Government," Simon Power said.


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