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Interest Free Student Loans Policy Passed Into Law

Interest Free Student Loans Policy Passed Into Law Last Night


The government's policy of interest free student loans while studying was passed into law last night in Parliament.

"The wiping of interest on student loans for full time and low income, part time students is an important first step in lowering the costs of tertiary education," said Sam Huggard, Co President of the New Zealand University Students Association.

"We supported the policy and are pleased to see it passed into law. After ten years of increasing costs to students, we now have a government that appears willing to front up to the financial barriers that face tertiary students," said Tanja Schutz, NZUSA Co President.

"Governments should not make money off students during their period of study to further their education and increase the human capital of the nation, and this policy ensures that they don't," said Sam Huggard.

"The policy also means that students will be able to focus on their educational achievement while they are at tertiary institutions, rather than worrying about the interest that is compounding," said Tanja Schutz. "Recent studies have proven that part time work has come in the way of many university student's studies."

"NZUSA thinks that a year into government, the Labour and Alliance government have made some important steps in cutting the costs of to tertiary students, but these need to be followed through with further funding in upcoming budget rounds," said Sam Huggard. "In particular, up-front fees must come down, as these remain the principal barrier to tertiary education."

Ends.


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