Reserve Bank warning highlights need to act on student debt

"The warning by Dr Adrian Orr, Deputy Governor of the Reserve Bank, that high and rising debt level puts our economy at risk highlights the need to act on student debt", said Progressive MP Matt Robson today

"In a speech today entitled ‘A prosperous but vulnerable nation’ Dr Orr points out that the rapid increase in private household debt over the last decade has put New Zealand in a very vulnerable position if a major international economic shock should occur.

“One remedial step that could be taken to lessen the risk would be to act as quickly as possible to reduce the high student debt levels. To that end the Progressive Party is campaigning to allow graduates to sharply reduce their student debt in return for working in New Zealand. This would allow them to learn and earn in New Zealand while contributing to the reduction of high household debt levels.

“This is a policy that allows both the individual and the nation to move ahead," said Matt Robson.

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