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


National's Key ignorant on loans rules - Mallard

National's Key ignorant on loans rules - Mallard

"John Key's statement on Labour's student loan policy shows that he is ignorant of all the checks and balances that have been introduced into the student loans scheme, to remove the level of abuse that National allowed when it was in government," Education Minister Trevor Mallard said today.

"Students will still have debt that they have to pay off so I do not expect Labour's policy to be an incentive for them to borrow more. In Budget 2005 we announced a beefed up student finance advisory service to ensure that students can get good financial advice.

"The way the loan scheme works, it is not possible to get lump sums or a large amount of money upfront or to do unlimited borrowing, so there is very little incentive to take out a loan for this reason.

"When people borrow under the scheme their fees are paid directly to the institution where they are studying, or paid to them if they can show they have paid directly to the institution. The living costs part is paid in weekly instalments, and only while you are studying.

"This is not the first time National has cried wolf.

"When the no interest while studying policy was implemented there were predictions of a massive increase in the number of borrowers. This did not eventuate, with only a slight increase.

"We will continue to review procedures around borrowing and make any changes as necessary to ensure loan balances are not being increased excessively.

"Borrowing must be for living costs (up to $150 a week for living costs while studying), fees and up to $1000 course costs. People with large loans are generally those in courses with high fees that involve long periods of study like medicine. "

"All our costings are based on forecasts and assumptions of behaviour, just like the policy of every other party," Trevor Mallard said.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


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

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news