Students welcome no interest on loans tomorrow

31 March 2006

Students welcome no interest on loans tomorrow

Students and graduates will be welcoming the introduction of no interest on student loans when the policy changes come into effect tomorrow.

"The changes that bring in no interest on student loans are a real positive move for New Zealand," said Conor Roberts, Co-president of the New Zealand University Students' Association (NZUSA).

"For over a decade, students have been highlighting the negative effects of the student loan scheme, particularly the crippling effects of the interest rate, and it is great to see Labour's response to this problem become a reality."

"Cutting interest from student loans will mean that graduates will be able to pay off their loan faster, more likely to keep their skills in New Zealand, start a family sooner and buy a house quicker."

"It's a positive policy, not just for students and graduates, but for the whole community."

"It is also good to see the government recognising the value of volunteering abroad with the announcement of a list of overseas volunteer organisations which graduates can work for and still get the benefit of not having debt pile up because of the interest."

"We would also like to extend a welcome to those graduates who will be returning to our shores because of the amnesty on interest that comes in as part of this policy"

"We encourage all New Zealanders to reflect on the positive fact that from April the 1st we have made it easier for students to throw the debt monster off their backs," he concluded.

ENDS

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