Migrants loan needs must be considered

Migrants loan needs must be considered

Labour Associate Ethnic Affairs spokesperson Dr Ashraf Choudhary says the Government must take into account the financial struggle migrant and refugee families will face if it plans changes to Labour’s interest-free student loan scheme.

“Labour introduced interest-free loans in 2005 to give more Kiwis the opportunity for higher learning,” Ashraf Choudhary said. “After promising to keep the scheme in place, Prime Minister John Key is now hinting at a back-track.

“Many skills and qualifications gained in migrant countries of origin are not transferable in New Zealand, and therefore it is vital new migrants undertake study here to achieve qualifications that are recognised.

“Earlier this week John Key spoke to students at Victoria University about student loan debt, and suggested that the interest-free student loan scheme doesn’t economically ‘stack up’,” Dr Choudhary said. “That makes me question his motives

“If National is toying with the idea of bringing back interest it must seriously look at the deterrent impact that will have on migrant and refugees gaining an education which is beneficial to their family, future security and to New Zealand.

“Student loans already create long-term impacts on the financial security of families, such as buying a home and saving for retirement.

“Women also take twice as long on average to repay their loans, particularly when they take time out of the paid workforce to have children,” he said.

ENDS