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

Gordon Campbell: On The Politics Of Scaring Voters Back Into Line

Fear has always been a useful mobilising tool in politics… yet in 2017, bogeymen of all shapes and sizes seem to have fallen on hard times. For years, the National party had painted itself as being the only reliable defensive bastion against the terrifying prospect of a centre-left government…

In fact, the polls suggest that the public seems to quite like the new government, its Prime Minister, and its proposed plan of action. Somehow, even though a Labour/Greens/NZ First government is in power, the sun is still rising and setting, on time. More>>


Gordon Campbell: On Drinking Water As A Failure Of Political Leadership

It is almost possible to feel sorry for the Health Ministry in their terrible, no good, very bad week... More>>


Gordon Campbell: On Saying ‘Work For The Dole,’ Nicely

As New Zealand First learned the hard way from its two previous periods in government, small parties in MMP coalitions get blamed for the unpopular stuff done by their senior partner in power, but no one remembers the good stuff the junior player brought to the table... More>>


Seismic Blasting: Greenpeace Launches Legal Challenge Against Amazon Warrior

A legal challenge against the world’s largest seismic oil exploration ship was launched at a public rally on Parliament Lawn. More>>


Tertiary: 80,000 People Eligible For Fees Free

The Government has today made good on its 100-day promise of delivering the first year of fees-free post school training and education and industry training from 1 January next year, says Education Minister Chris Hipkins. More>>


PM's Presser: Rebuilding Cathedrals, Felling Trees

Prime Minister Jacinda Ardern attended the press conference today with Minister for Greater Christchurch Regeneration Dr Megan Woods to announce urgent legislation this week for the rebuilding of the Christ Church Cathedral. More>>





Featured InfoPages