ACT delivers answer to student debt concerns

Friday 28 Jan 2005

Deborah Coddington - Press Releases - Education

Vote ACT this election to pay off your loan quicker after graduation, was ACT Education spokesman Deborah Coddington's message to students today.

The MP was responding to a New Zealand University Students' Association study that shows the average student debt has risen by 36 percent since 2001.

"ACT Leader Rodney Hide in his state of the nation address last week mooted dropping the top tax rate to 25c in the dollar - that would make a huge difference to any graduate trying to repay their loan," Miss Coddington said.

"A graduate earning $40,000 per year could add an extra $35.86 to the minimum student loan repayment. That would pay off the average loan of $14,547 in nearly half the time - four years instead of seven years and 11 months.

Miss Coddington said many graduates were finding it an almost impossible task paying off their loans while also paying Helen Clark's 39-cent envy tax. "Many will simply leave New Zealand to escape the millstone around their necks," she said.

"ACT wants to make it easier for graduates to pay off their student loans quicker so they can get on with their lives, whether that be to save for a house, have a family or set up a business," Miss Coddington said.

ENDS

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