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Tie interest-free loans to completing studies

Tuesday, 2 August 2005

Dunne: Tie interest-free loans to successful completing studies

United Future leader Peter Dunne today called for interest-free student loans only for those who successfully complete their studies.

"Critics of the Government's plan announced last week have rightly pointed to the possibility of a massive blow-out. The Government's idea is essentially good, but in order to make it better, it should be tied to exam success.

"This would have a number of benefits, including seeing to it that students don't run up large levels of debt and end up with little to show for it," he said in tackling Education Minister Trevor Mallard.

"It also serves to safeguard the interests of the taxpayer, so there is no prospect of people accessing the cheapest loans around without any intention of actually attending a course," Mr Dunne said.

He also challenged the Government to boost student allowances by reducing the age for parental income testing from 25 down to 20 - a long-standing United Future policy.

ENDS

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