Greens' calculator overpromises

“The Greens have never been up to it when it comes to finance and economics, and their student loan savings calculator, which misleads students, is more proof," says ACT Leader David Seymour.

“A graduate earning $45,000 who goes to the Party’s online calculator would come away believing the Greens’ policy would save them an extra $5,400 per year. In reality the policy would save them $3109.92, a little over half as much.

“The mistake comes because the Greens’ calculator assumes that student loan holders pay 12 per cent of their total income, rather than 12 per cent of all income above the repayment threshold of $19,084.

“This just goes to show, the Greens can’t do the most basic accounting and are a liability on economic issues."

For the benefit of the Green Party, loan repayments, and the amount their policy would save students, is:

(Annual Income – 19,084) x 12%

Not

Annual Income x 12 %

Of course there are other reasons why this policy is bad economics, covered by ACT yesterday: http://www.act.org.nz/posts/greens-economics-blindspot-takes-you-faster-into-debt

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