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


Students will borrow a billion, make more

Students will borrow a billion, make more

National Party Education spokesman Bill English says Labour’s interest free student loans will see students borrow billions they don’t need and put it into interest-earning bank accounts.

“This policy will see student debt skyrocket. Students can borrow up to about $10,000 per year, on average they currently only borrow about $6,300 of that. But now that they won’t be charged interest, they’d be mad not to borrow the extra $3,700 to either spend or put into an interest-earning account.

“Labour will allow more students to borrow more and most of them will.

“Currently just 55% of students eligible for a loan take one out. But now the more than 100,000 students who are eligible for a loan but haven't yet taken one out have a strong incentive to take out a full student loan and put it in the bank to earn a nice little nest egg on the taxpayer.

“Even if only half of those students take up the opportunity, the total student debt burden will grow by several billion in the next four or five years.

“I want to see students get ahead but not at the expense of others. Why should a taxi driver or a carpenter pay all of the interest on a loan taken out by someone who will potentially have much greater earning power than they do?

“Labour’s arguments about tougher rules for borrowers don’t wash. There is nothing to stop anyone switching from parental support or paying their own way, to charging it all back to the taxpayer.

“Labour has not thought this policy through. Their desperation in the face of bad polls has seen them grossly underestimate the cost of this interest free policy,” says Mr English.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Environment And Conservation: Changes To Our Oceans Pose Serious Concerns

New Zealand’s oceans, coasts, and marine wildlife are under growing pressure, according to the first national report from the Ministry for the Environment and Statistics New Zealand about the marine environment. More>>


Police Authority: Use Of Taser Was Disproportionate And Unjustified

The Independent Police Conduct Authority has found that an officer’s second use of a Taser on a mentally unwell Hokitika man was disproportionate and unjustified. More>>


Gordon Campbell: On Holidays, Hekia Parata And Badlands

Hekia Parata, adieu. Reportedly, she’s been ‘passionate’ about education. She has “bravely’ led the charge on the government’s education reforms. In the past week , many of the postscripts to Hekia Parata’s career as Education Minister have sounded like a schoolteacher desperately trying to find some reason why a D student can be marked up to C minus. More>>


Minister of Finance: Plan Shows $100 Billion Infrastructure Projects

Finance Minister Bill English has today launched the Government’s Ten Year Capital Intentions Plan (CIP) which shows a pipeline of $100.9 billion worth of infrastructure projects over the next decade. More>>


Werewolf: Safe Landings Gordon Campbell on the safety challenge to the Wellington runway extension.

The safety-related legal challenge revolves around the size of the 90 metre long Runway End Safety Area (RESA) being proposed for the runway extension. More>>


Environment Commissioner: We Need To Work Together On Climate Change And Farming

“The debate around agricultural emissions and the ETS has been polarised for too long,” said the Commissioner. “But the ETS is not the only way forward – there are other things that can be done.” More>>


NZ Super Fund: Seeking To Put A Market Price On Climate Change

Oct. 19 (BusinessDesk) - The New Zealand Superannuation Fund says it will devise a set of rules to assess investment winners and losers under climate change, a strategy that could rule out fossil fuels or producers such as current portfolio member Exxon ... More>>


Rejuvenation: Parata Will Not Contest 2017 Election

Education Minister and National List MP Hekia Parata has today announced that she will not be contesting the next election. She advised the Prime Minister of her decision earlier this year. More>>

Get More From Scoop



More RSS  RSS News AlertsNews Alerts
Search Scoop  
Powered by Vodafone
NZ independent news