WIRES:

Changes To Loan Scheme Announced By Shipley

Friday, 13 August 1999, 1:00 pm
Article: Jonathan Hill

“From 2001 we will introduce two changes to the scheme.

The first is a 25 per cent discount on the real interest rate charged while students are borrowing. This will be limited to low income earners, but should apply to the majority of students.

The second is to prioritise the use of student loan repayments. Money will be applied to the effect of inflation first. Once that commitment is paid, 50 per cent of the remainder will be used to pay the loan.

If the interest bill is more than the other half, the Government will pay the balance.

These changes will make a dramatic improvement to the student loans scheme and help alleviate the debt burden of students.”

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