Parliament

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

 

National offers bonus to student loan borrowers

John Key MP
National Party Leader

31 January 2008

National offers bonus to student loan borrowers

National Party Leader John Key today announced a plan to help student loan holders get out of debt quicker.

The plan agreed to by the National Party caucus is aimed at encouraging people to make voluntary payments on their student loans - and therefore pay off their loan balances sooner - through an incentive.

"We will keep interest-free student loans for tertiary students. Half a million New Zealanders have a student loan. Many have made long-term financial decisions on the basis of the current policy and we want to ensure they can plan with certainty," Mr Key says.

"One of our concerns has been that the scheme offers no incentive for New Zealanders to repay any earlier. That means loan holders are likely to have their debt for longer, which has implications for other areas of their lives like buying a house or starting a family.

"When the interest-free student loan scheme was introduced, National said the scheme would encourage more students to take on debt and discourage them from repaying sooner. Official figures show this has turned out to be the case.

"The plan I'm announcing today is that the Government will offer a 10% bonus on a loan balance for voluntary lump-sum payments of $500 or more. The incentive would apply in the 10 years following the start of repayments by the borrower.

"For example, if a borrower pays $800 off their loan in a lump sum above and beyond the compulsory requirement, the Government would take $880 off their loan balance.

"What I've announced today is aimed at helping borrowers get out of debt sooner, and give them certainty so they can plan. National has no intention of doing anything that impedes people from realizing their own educational ambitions.

"The policy is also aimed at helping enhance New Zealand's overall performance. Education is a hugely important part of our pathway forward."

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Back Again: Government Approves TPP11 Mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

.

 
 

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>

ALSO:

Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>

ALSO:

(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>

ALSO:

Earlier:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election