Parliament

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

 

Government Holds Student Loan Interest Rate Again

The government will hold the ‘headline’ interest rate for the student loan scheme at 7 percent for the third consecutive year, Revenue Minister Michael Cullen and Associate Education (Tertiary Education) Minister Steve Maharey announced today.

The headline rate is made up of the base interest rate, which will change from 3.1 percent to 5.1 percent, and the interest adjustment rate, which reduces from 3.9 percent to 1.9 percent. The interest adjustment rate is based on the CPI for the December 2001 quarter and reflects the decrease in the CPI between the December 2001 and December 2000 quarters.

"The headline interest rate is the highest rate that borrowers can possibly pay. Under changes introduced by this Government, however, most borrowers qualify for full or partial interest write offs and do not actually face the headline rate. The average interest rate actually faced by borrowers is estimated at 3.0%.

"Last year the government brought in changes to make the student loan scheme fairer to borrowers by wiping the interest charged to full-time, full-year students and low-income students.

"Other current students and former students have their base interest capped at 50 percent of their compulsory repayment obligation. Former borrowers continue to have all their base interest written off if their income is under the repayment threshold.

"By December last year Inland Revenue had written off $163 million in interest for the 2000-01 income year. It estimates that about 70 percent of borrowers have received a full or base interest write-off, or had their base interest capped at 50 percent of their repayment obligation,” the Ministers said.

Ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Veronika Meduna: The Kaikoura Rebuild

A Scoop Foundation Investigation

Friday will be a big day for people north of Kaikōura – and for hundreds of construction workers who are racing to reopen State Highway 1 in time for the holiday season.

By the afternoon, the South Island’s main transport corridor will be open to traffic again, more than a year after a magnitude 7.8 earthquake mangled bridges and tunnels, twisted rail tracks and buried sections of the road under massive landslides. More>>

 

BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>

ALSO:

Gordon Campbell: On Defence Spending, Alabama, And Dolly Parton

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>

ALSO:

Members' Bills: End Of Life Choice Bill Passes First Reading

The End of Life Choice Bill in the name of David Seymour has been sent to a select committee for consideration by 76 votes to 44. It is the third time Parliament has voted on the issue in recent decades and the first time such a Bill has made it over the first hurdle. More>>

ALSO:

State Sector: MPI Survives Defrag Of Portfolios

The Ministry for Primary Industries will not be split under the new government, but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety. More>>

ALSO:

Gordon Campbell: On Vulnerable Kids, RNZ Funding, And Poppy

The decision to remove the word ‘vulnerable’ from the Ministry for Vulnerable Children could well mark a whole shift in approach to the care of children in need... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages