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

 


Whoops! We Forgot To Mention That Bit

Labour’s “interest free” student loan policy is not all that it seems says Belinda Vernon MP for Maungakiekie.

“Labour has chosen its words carefully when describing its fairer repayment system,” says Ms Vernon. “It pays to read the fine print.”

“Labour says that ‘no interest’ will be charged on loans to full-time and other low-income students while they are studying.

“But when talking about how much interest will be charged once a student stops studying the words vary subtly but importantly.

“Labour says that for those earning between $14,716 and $25,000 no “base interest” will be charged. And for those earning between $25,000 and $30,000 “base interest” will be progressively applied.

“The difference between “interest” and “base interest” will be lost on most people. But when it comes to student loans the difference is important.

“As students know the interest rate charged on a student loan is made up of two parts: the base interest rate and the interest adjustment rate.

“The interest adjustment rate reflects the movement in the Consumer Price Index (CPI) of the preceding year. It is effectively an inflation adjustment.

“Clearly Labour intends to charge the interest adjustment rate or inflation component as soon as students leave the tertiary institution. But it isn’t prepared to say so!”

“Students should not be taken in by thinking that interest will only accrue once they earn over $25,000. This is clearly not the case. An inflation adjustment component will kick in as soon as they stop studying.”

“Labour’s policy is not what it seems,” concluded Ms Vernon. “Students, beware of Labour bearing gifts.”

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news