Retrospective loan cuts like retrospective fines

Friday, 24 September 2010, 9:57 am
Press Release: NZUSA

Retrospective loan cuts like retrospective speeding fines

Students are increasingly concerned that major changes to student loans will mean the end of studies for some.

>From 2011, eligibility for student loans for returning students will be dependent on academic performance for 2009 and 2010. Institutions and students are getting more worried as they get to grips with what the Government’s blanket back-dated changes mean.

“This policy is inherently unfair. Those studying in 2009 did not know their performance would be measured like this in 2011. To shift the goalposts and change the rules midway through the game is just wrong,” said David Do, Co-President of the New Zealand Union of Students’ Associations (NZUSA).

“Retrospective law making is generally frowned upon because it is inherently unfair. Imagine if the speed limit was changed from 100km down to 80km, and you received a speed camera ticket for doing 85km two years ago. It just wouldn’t happen because it is ridiculous law making and completely unfair,” said Do.

“The performance measure on loans is unnecessary. Institutions already monitor academic performance and deal with the very small fraction of students who are underperforming. Where necessary, they link struggling students with extra support, and that’s what helps students get back on track with their learning,” said Pene Delaney, NZUSA Co-President.

“In most institutions, academic progression policies do not allow students to keep failing continuously, instead they restrict their enrolment or kick them out altogether. So it’s not fair to assume students are just sitting around. Students do work hard,” said Delaney.

The loan changes may penalise those who are adjusting to study. For example, a student may have found it difficult to adjust in a new environment in their first year of studies in 2009, but is doing much better in their second year in 2010. Despite this, they could still lose access to loans if they do not meet the performance requirement, because of past grades they cannot change.

“Students may end up desperate to finish their studies or keep studying to come back up to the 50% threshold. Others may drop out. We might see students resorting to commercial loans, or even loan sharks. We shouldn’t be forcing students to resort to loan sharks to pay for their education,” says Do.

“These loan changes are far from perfect and will cause many more problems down the road. While NZUSA is engaged in dialogue with Studylink and the Ministry of Education on implementation issues, we believe the Government should still scrap this flawed blanket policy,” concludes Do.

NZUSA is the national representative body for tertiary students and has been advocating on student issues since 1929.

ENDS

© Scoop Media

NZUSA - New Zealand Union of Students' Associations

We stand for opportunity, for all.

NZUSA is the New Zealand Union of Students' Associations, the national body that represents New Zealand's students' associations and the interests of New Zealand's 400,000 students at universities, polytechnics and in trades training.

We conduct original research, advocate to Government and through the media, and support New Zealand's students' associations to be more effective on behalf of their members. We advocate alongside Te Mana Akonga – The National Māori Students' Association, and Tertiary Women New Zealand – The NZUSA Women's Caucus.

Since 1929, we've believed in a society rich in opportunity, where anyone from anywhere can become any thing. We support accessible, affordable quality public tertiary education.

Contact NZUSA - New Zealand Union of Students' Associations

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