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National party up to old tricks

National party up to old tricks

National's latest flip flop on student loans makes no sense unless they also plan to reintroduce interest on student loans, Tertiary Education Minister Pete Hodgson said today.

"Why would anyone go for a 10 per cent discount when their loan already attracts no interest? Any student from a wealthy background, who in practice would be the only ones with resources to increase repayments, would also be most likely to have the financial skill to work out that they are better off investing elsewhere and keeping their interest-free loan in its current state.

"Therefore, it is logical to conclude that National has again told only half the story, just as they did with GP fees last year. It is time to remind the country that in 1990 they did the same thing to students - back then they promised to scrap Labour's student loan policy in its entirety, but failed to announce that they would be replacing it with a harsher one.

"National has consistently opposed each and every measure that this government to take over the last eight years to improve affordability of tertiary education. It beggars belief that they would now offer a discount for early payment of an interest free loan without also having a secret agenda of reintroducing interest.

"John Key's latest flip flop on student loans keeps demonstrating how weak his convictions are on any policy and what desperation to govern really looks like."

ENDS

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