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Privatisation Solution To Loan Problems

A computer glitch at WINZ which affects thousands of student loan applicants is another symptom of an inefficient government bureaucracy which needs to be privatised, according to a national student leader.

Prebble's Rebels President, Clint Heine, said that the best way to eliminate the problems and delays experienced by students applying for loans is to privatise the loans scheme and encourage competition.

Mr Heine said "we should open up the provision of student loans to private banks and financial institutions. Privately run loan providers would deliver students a better, more reliable service with fewer delays."

"Competition in the delivery of student loans would reduce interest rates, while efficient loan providers with lower overheads will help reduce the student debt - something that the government is supposed to be committed to."

Mr Heine also asked why student unions were complaining at the inefficiency of government departments when they have consistently campaigned for increased government interferance and a more bureaucratic state.

ENDS

For more information, contact:
Clint Heine (+64) (021) 122 8544
president@rebels.org.nz

Prebble's Rebels - http://www.rebels.org.nz

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