Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Student Debt limits access to Mortgages


Student Debt limits access to Mortgages

New research released today by the New Zealand University Students’ Association (NZUSA) shows that some banks are rejecting applications for mortgages based on the size of graduate’s student loan debt despite the Banking Ombudsman and the Government stating that the size of a loan debt should not be taken into account when seeking finance.

The nationwide survey of bank managers and loans officers found that student loans had been a factor for 51% of respondents when declining finance. Mortgages were the most likely form of finance to be declined.

“Graduates should disclose that they have a student loan but not the size of it,” said NZUSA Co-President Andrew Campbell. “Until banks ensure that their policy is in line with the Banking Ombudsman and only consider the ability of clients to make repayments, graduates will be less able to buy a house or start a business.”

“Student debt is clearly making it harder for graduates to access finance. Not only is it harder to save for a deposit on a house when 10% of your income over $15,000 is going on your debt, you could be hit again by banks who consider you a risk.”

“This survey backs up what has long been assumed; student loans make it harder to access finance. This survey is further evidence that the student loan scheme is making it more difficult for young New Zealanders to do the things that their parents took for granted – live and work in New Zealand, have children and buy a home. The trend of decreasing home ownership is likely to continue unless banks change how they deal with clients that have a student loan.”

“The government needs to reduce the cost of tertiary education by increasing access to student allowances and reduce fees if it wants to maintain the New Zealand way of life,” said Campbell.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case...

Obviously, sick people shouldn’t be being treated by doctors and nurses who are themselves sick and potentially infectious. Similarly, Police emergency calls also need to be fielded by people who’re feeling alert, and on top of their game. More>>

 
 

MPs' Computers To Be Searched: Inquiry Into Leak On Simon Bridges' Expenses

An inquiry has been launched to find out who leaked the National Party's expenses to the media... Parliament's speaker, Trevor Mallard, said a Queen's Counsel would lead the inquiry with the help of an employment lawyer and also someone with forensic IT skills. More>>

ALSO:

Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching. More>>

ALSO:

Wellington.Scoop: City Council Ends Its Support For Jackson’s Movie Museum

The Wellington City Council and the Movie Museum Limited have today announced a mutually-agreed parting of the ways for a joint project between the Council’s Convention Centre and TMML’s Movie Museum... Both parties remain optimistic for the future of their respective projects. More>>

Pay Equity: Historic Settlement For Education Support Workers

The New Zealand Educational Institute (NZEI) and the Ministry of Education today signed Terms of Settlement to address a pay equity claim for 329 support workers who work with very young children in early childhood and primary schools. More>>

ALSO:

Gordon Campbell: On The Stereotypes About Jacinda Ardern

Routinely, female politicians get depicted as either show ponies or battle axes, with little room for anything else in between. .. More>>

Weekend Interviews: "Discriminatory And Racist" Aussie Deportations

The former president of Australia’s Human Rights Commission Gillian Triggs says deportations have risen dramatically in Australia since 2014 when ministers and ministerial delegates were given the power to cancel visas - and half of those being deported are New Zealanders. "These are massive numbers, actually escalating dramatically."... More>>

ALSO:

Legal Challenge: Prisoner Has 9 Boxes Of Documents Seized

Human rights organisation People Against Prisons Aotearoa says a prisoner they advocate for has had 9 boxes of legal documents seized from him just days before his case against the Department of Corrections was to be heard. More>>

Single-Use Plastic Bags: Govt To Phase Them Out

Single-use plastic shopping bags will be phased out over the next year, Prime Minister Jacinda Ardern and Associate Environment Minister Eugenie Sage announced today. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages