Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

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

 

Students saved $250 million in wiped interest

Wed, 23 Feb 2005

Students saved $250 million in wiped interest

since the introduction of the Labour-led government's interest write off policy in 2000 tertiary students have been saved more than $250 million in waived interest charges.

---------------------------------

Tertiary students have been saved more than $250 million in waived interest charges since the introduction of the Labour-led government's interest write off policy in 2000, Education Minister Trevor Mallard announced today.

"As students begin orientation at tertiary campuses around the country this week, it is worthwhile to do a stocktake of the improvements this government has made in student support since coming into power.

"Between 2000 and 2004, students have been saved $250.9 million in interest charges that have been written off as a result of the full interest write-off policy introduced in 2000.

"Labour has kept its word to students and their families by making tertiary education more accessible and more affordable.

"Under National during the 1990s, student fees and student debt were spiralling out of control. Average tuition fees increased by 40 per cent from $2,514 in 1997 to over $3,531 by the time we delivered our first Budget in 2000.

"By contrast, under Labour the growth in the average student loan balance between 2000 and 2004 was just 15.4 per cent and average tuition fees have fallen by 25 per cent since 2000, to $2667 in 2003.

"The student loan write off policy means that most students are not charged interest while studying, Student loan repayment policies have also been changed so that at least half of all repayments go to the principal part of the loan. Interest no longer mounts up uncontrollably like it used to.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

"These changes contributed to a considerable reduction in the average repayment time for student loans. Estimated loan repayment times have decreased from 14.8 years in 1999 to 9.3 years currently.

"This year we've also made big changes to the eligibility criteria for student allowances. Budget 2004 injected an additional $110 million in student support, and we're expecting borrowing by students to down by around $20 million a year as a result.

"Overall 36,000 students have gained from Budget 2004 and now nearly half the full-time student population receives an allowance. "Labour is committed to giving students a fair go, we know more needs to be done and we are progressively improving student loan and allowance rules," Trevor Mallard said.

ENDS

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.