Parliament

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

 

Maharey backs students’ call to banks


Maharey backs students’ call to banks

Associate Minister of Education (Tertiary Education) Steve Maharey is supporting a call by a national students’ organisation for banks to stop taking into account the size of a persons’ student loan when considering their application for a mortgage or other finance.

The New Zealand University Students’ Association today released a survey of banks that raised the prospect that some banks were still continuing to assess finance applications on the basis of total debt, rather than a person’s repayment obligations.

Steve Maharey said that this practice was not appropriate as the Student Loan Scheme was an income-contingent repayment system.

“No borrower needs to pay more than a fixed proportion of their income over a set threshold, no matter how large or small their loan is. If that means that the debt is never repaid, then the balance is written off upon death.

“In terms of a borrowers’ ability to service other financial obligations, what matters is therefore the fact that they have a loan and the size of their repayment obligations, which are determined by their income.

“The possibility that this represented an administrative error was raised by the Banking Ombudsman as early as 1997, and I intend to meet with her soon to discuss what can be done to encourage banks to develop nationally consistent policies about how to treat Student Loan debt.

“This issue illustrates the continuing confusion that surrounds the Student Loan Scheme. Many people see the Student Loan Scheme as a debt in the conventional sense, and a great deal of anxiety and difficulty flows from this. The government has embarked on a Review of Student Support and we intend to reform the current system in a way that makes its income-contingent features clearer,” said Steve Maharey

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Charlotte Graham: Empowering Communities To Act In A Disaster

The year of record-breaking natural disasters means that in the US, as in New Zealand, there’s a conversation happening about how best to run the emergency management sector and what philosophies best engage and protect communities in the event of a crisis.

How much of the responsibility for a community’s safety in a natural disaster is the Government’s, and how much can be left up to the community themselves? And how do we ensure none of our most vulnerable residents are left behind? More>>

 

CPAG Report: The Further Fraying Of The Welfare Safety Net

New Zealand’s welfare system has undergone a major transformation during the past three decades. This process has seriously thwarted the original intent of the system, which was to provide a decent standard of living for all New Zealanders in times of need... More>>

ALSO:

Signage, Rumble Strips, Barriers: Boost For State Highway Road Safety

Boost for road safety this summer Associate Transport Minister Julie Anne Genter today announced a short term boost in road safety funding this summer and signalled a renewed focus from the Government on introducing safer speed limits. More>>

ALSO:

Risks & Adaptation: Cheaper To Cut Emissions Than Deal With Climate Change

The cost of climate change to New Zealand is still unknown, but a group of experts tasked with plugging the country's information gaps says it will likely be significant and it would be cheaper to cut greenhouse emissions than simply adapting to those changes. More>>

ALSO:

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:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages