Education Policy | Post Primary | Preschool | Primary | Tertiary | Search

 

No-interest student loans: Tertiary 'Think Big'

31 March 2006

No-interest student loans: 'Think Big' meets the tertiary education sector

Writing off interest on student loans for New Zealand-residing graduates, which takes effect tomorrow, will cost millions but will not improve education quality or help disadvantaged students get to university, says Education Forum policy advisor Norman LaRocque.

The write-off of interest will cost hundreds of millions of dollars each year and will require the government to write off over a billion dollars in Crown assets. Despite that, it will not provide current students with one additional dollar or fund even one additional student in tertiary education.

Nor will it provide tertiary institutions with additional money to hire top-class academic staff or fund world-leading research, Mr LaRocque said.

Generally, university students come from higher-income families -- this policy is in effect a subsidy for such families. It does nothing to help those disadvantaged students struggling even to finish school.

The 'zero interest, zero sense' student loan interest policy will lead to more unnecessary student loan borrowing, the drying up of voluntary repayments and a ballooning in student loan debt, Mr LaRocque said.

"The policy change is nothing more than a latter day version of the 1970's Think Big policies. It will set back tertiary education policy by at least a decade.

"While some may celebrate this 'great leap backward', they should recognise that the consequences of this policy change will haunt the tertiary education sector for years to come."

ENDS

© Scoop Media

 
 
 
Culture Headlines | Health Headlines | Education Headlines

 

Howard Davis: Dryzabone - Robert Conolly's The Dry

After the terrible devastation caused by last year’s bushfires, which prompted hundreds of Australians to shelter in the ocean to escape incineration and destroyed uncountable amounts of wildlife, The Dry has been released during a totally different kind of dry spell. More>>


Howard Davis: Benjamin Ree's The Painter and The Thief

The Norwegian filmmaker had long been fascinated by art thieves who commit high-stakes crimes with a delicate touch when a chance Google search in 2015 uncovered a botched heist in Oslo. More>>


Howard Davis: Anna Coddington Beams

Anna Coddington's thin, wispy vocals fit her songs beautifully, providing a wonderful lilting quality that pervades her latest album, producing instant ear worms. More>>


Howard Davis: Hit the Road, Jack - Chloé Zhao's Nomadland

Nomadland is perhaps the ultimately 'road' movie as it follows a group of dispossessed and disenfranchised vagabonds who find a form of communal refuge in camp sites and trailer parks after the economic contraction of 2008. More>>

Howard Davis: Byrneing Down the House - Spike Lee's American Utopia

Lee does an admirable job capturing Byrne's stunning live performance of his latest album, but the real star of the show is the staging. More>>


Howard Davis: The Phoenix Foundation Friend Ship Tour Docks in Wellington

A sense of local pride was certainly running high at the Opera House on Saturday night, as the lads ran through a tasty little set drawn mostly from their latest album Friend Ship (splash out for Xmas on the shocking pink extra-thick vinyl edition). More>>


Howard Davis: Avantdale Bowling Club

Auckland rapper and MC Tom Scott brought his stunning jazz-infused Taite Music Prize-winning project Avantdale Bowling Club to the Opera House headlining Wellington's 2020 Jazz Festival. More>>

Howard Davis: Troy Kingi Rules The San Fran

The award-winning Northland musician performed songs from his new record The Ghost of Freddie Cesar, the fourth installment in his 10/10/10 series - ten albums in ten years in ten genres. More>>

 
 
 
 
 
 

LATEST HEADLINES

  • CULTURE
  • HEALTH
  • EDUCATION
 
 
  • Wellington
  • Christchurch
  • Auckland