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


Students stifled by overdue loans

Students stifled by overdue loans

The latest overdue student loan figures show that students are being caught in an ever-worsening cycle of debt, Green MP Nandor Tanczos said today.

The Green's Tertiary Education spokesperson was alarmed that the latest Inland Revenue report for the quarter ending March 31, 2003 showed the IRD was chasing more than $81 million in overdue loan payments.

This was $20 million more than the figure for the March 2002 quarter as the number of overdue borrowers swelled from 44,683 to 48,407.

"The student loan scheme obviously is not working when nearly 50,000 people can not keep up with their payments," said Nandor.

"It is farcical that the IRD is chasing 50,000 students, tarred with the same brush as tax dodgers," said Nandor.

"Despite the glib promises of a satisfying career through a better education, the reality for many students is that they can't get ahead in life because they're being caught in a poverty trap of the Government's making."

The figures also show that the amount of money in loans written-off due to bankrupt borrowers has doubled from $496,017 in the March 2002 quarter to $1,086,681 for the March 2003 quarter.

"It is illogical to bankrupt students for a debt they incurred studying for a better future," said Nandor.

"The government should be ashamed that students are being bankrupted by this scheme. Whether because of crippling repayments or because they choose to go down this path to escape debt repayment, it just shows how desperate things are for some graduates.

"For a government that is supposed to be student-friendly, this is unacceptable. When will they see the obvious, that the student loan scheme is damaging the future prospects of New Zealanders?"

The Green Party tertiary education policy is to phase out all student fees and ease the $5 billion student debt burden by applying a zero real interest rate to loans and introducing a debt write-off system for all students contributing to paid and unpaid work in New Zealand.

The Greens will also introduce a universal student allowance at the level of the unemployment benefit.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news