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


Labour's Proposal Will Double Student Debt

Labour's policy for interest free loans while students are studying will double student debt, and will cost the taxpayer over a billion dollars, says ACT Leader Richard Prebble.

"A third of all students today have no debt. But every student will have a huge incentive to take out the maximum loan if it's interest free, even if they intend just taking the money down to the local savings bank to earn the interest.

"Unfortunately, between receiving the loan and getting to the savings bank, many students will find the temptation too great and will spend it on a trip to Bali.

"Labour says its tertiary pledge will cost the taxpayer another $700 million, while its income tax proposal will raise only $330 million - so where is the extra money coming from? Maybe it will come from their coalition partner the Alliance's proposal for a land tax, which is of course a tax on small business.

"The figure of $700 million is clearly wrong, because it assumes students won't borrow any more money when its interest free. Obviously they will. Student debt will double, so the real cost of this policy over 3 years has got to be $1.4 billion. This one policy alone will cost more than Labour claims it's going increase taxes by.

"There are things wrong with the student loan scheme. Students are paying too much interest because the students who do repay their loans are also being forced to repay the loans of students who are delinquent. This is something that Labour 's proposal doesn't tackle. Delinquent loans should fall on the government - and that would reduce interest rates by a third.

"Students' tuition fees are also too high because students are being asked to subsidise not just the costs of tuition but also university research which is over 40% of university costs," Mr Prebble said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Welfare: More Measures To Help Those Facing Homelessness

The Government has announced additional measures to prevent and reduce homelessness focused on ensuring at-risk individuals and whānau have access to stable housing and continue to stay housed.

Associate Minister of Housing, Kris Faafoi, and Minister of Social Development, Carmel Sepuloni, have announced $54 million in Government funding for initiatives which will support at-risk individuals and whānau to stay in their existing tenancies.

The funding will also provide additional wrap around services. More>>



Pacific Island Forum: Australia v Everyone Else On Climate Action

Traditionally, communiques capture the consensus reached at the meeting. In this case, the division on display between Australia and the Pacific meant the only commitment is to commission yet another report into what action needs to be taken. More>>


Unscoped Or Missed Damage: Resolution For Canterbury Owners Of On-Sold Homes

People with over-cap on-sold* properties in Canterbury can now apply for a Government payment so they can get on and repair their homes. More>>


Hamilton-Auckland: First Urban Growth Partnership Signed

New Zealand’s first urban growth partnership between the Government, local councils and mana whenua was signed at a meeting of mayors, chairs and ministers in Hampton Downs today. More>>


Vote On Action Next Week: Secondary Principals Walk From Negotiations

“Unfortunately we consider there is no further value in continuing negotiations at this point. The government has not been able to table an offer that will be acceptable to our members.” More>>

Patrol Car Stolen, Glocks Taken: Manhunt In Gore

The driver rammed the patrol car before fleeing on foot with Police chasing, also on foot. The man has then circled back around, stolen the patrol vehicle, which had the keys left in it, and rammed another Police car... Two Police-issued Glock pistols were stolen. More>>


"Shocking And Dangerous": Accused Mosque Shooter's Prison Letter Posted Online

The man accused of the Christchurch mosque attacks has sent seven letters from prison and had two others withheld, Corrections Minister Kelvin Davis says. Corrections has now blocked the accused gunman from sending or receiving mail... More>>


Standing On List Only: Paula Bennett To Run National’s Election Campaign

The National Party is pleased to announce the appointment of Paula Bennett as our Campaign Chair for the 2020 General Election, President Peter Goodfellow says. More>>




InfoPages News Channels