Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Loan interest scrapped for students who stay in NZ

Rt Hon Helen Clark
Prime Minister of New Zealand

Hon Trevor Mallard
Minister of Education

LABOUR’S KEY ELECTION PLEDGES No. 2:
Interest scrapped on student loans for students who stay in NZ


Prime Minister Helen Clark and Education Minister Trevor Mallard today announced the second of Labour’s key election pledges: no further interest will be charged for those with student loans who reside in New Zealand.

Helen Clark said that this was a further important step in Labour’s policy to make tertiary education more affordable.

"In our first term in government, we stopped interest from accruing while students were in full-time study. Now Labour will scrap all future interest charges on student loans for New Zealand-based graduates from 1 April 2006.

"Under Labour, from 1 April next year, no interest will accrue on student loans. And from that point, students who borrow will only pay back what they have borrowed.

"Many students have found that their efforts to reduce their debt have been limited because of the need to service interest payments. The scrapping of interest from now on will reduce total debt and knock years off repayment times."

Helen Clark said that a graduate with a debt of $15,000 who earned $35,000, factoring in a three per cent increase in salary per year, would save $6,935 and pay their loan back in seven years. This means that the time required to pay back student loans will have more than halved under Labour.

Helen Clark said that as part of the policy those graduates who choose to work overseas will be charged interest at the current rate.

"Some graduates will leave, for work and travel as young New Zealanders always have, but this policy will encourage them to return home more quickly. Those who go overseas for full-time study at postgraduate level, will not be charged interest as long as they’re studying," Helen Clark said.

"There will also be an amnesty period in 2006 where those who return from overseas or enter into a repayment arrangement will not be charged the penalty interest for any overdue payments.

"This policy is intended to encourage graduates to stay in New Zealand and contribute to our economy and society. We recognise that for some people student loan debt may have influenced their choices about where to live and work. Graduates in New Zealand will be better off as a result of this policy.

"The total cost of this policy is expected to begin at around $100 million in its first year, rising to around $300 million per annum."

Helen Clark and Trevor Mallard made the announcement at the launch of Labour’s student support policy.

Trevor Mallard said the policy also commits Labour to:

- Maintain a simplified, capped tuition fee structure to provide certainty as to fee levels to students throughout the duration of their studies.

- Conduct a specific review of the funding arrangements for medical and dental students.

- Progressively increase parental income thresholds so that at least half of all fulltime students will receive a student allowance.

- Continue to increase parental income thresholds each year by the rate of inflation.

- Increase the personal income abatement rate for student allowances each year by the rate of inflation.

- Increase the number of bonded scholarships which assist students with the costs of fees.

“Labour is committed to keeping the cost of fees down, and to making more students eligible for allowances. Tertiary education is a vital investment in our future as a country, and Labour recognises that we must do more to support students while they undertake their studies,” Trevor Mallard said.

“This policy is straightforward and ensures that all graduates will benefit in the same way, regardless of how much they earn. Labour has delivered much for students in the last six years, and with this policy we are taking another step towards more affordable tertiary education,” Trevor Mallard said.

Students and graduates can work out how much they will save and how their repayment times will reduce by using the calculator on the Labour website. (www.labour.org.nz)

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On Judith Collins’ Apparent Inability To Read The Public Mood


The basic skill that a successful politician needs is the ability to “read the room” and gauge the public mood. If National Party leader Judith Collins ever possessed that ability, it seems to have deserted her of late. Surely, very, very few of the public would agree with Collins and her deputy Gerry Brownlee when they claim :
(a)that the threat from Covid-19 means that the election due on September 19 must be postponed until November, or sometime next year
(b) that in the middle of the current outbreak the government is obliged to hand over all the relevant decision- making to the top officials in the public service... More>>

 

Government: Plan To Tackle Problem Plastics

Following the success of the phase out of single-use plastic shopping bags, the Government now has plans to phase out more single-use and problem plastics to reduce waste and protect the environment announced Associate Minister for the Environment ... More>>

ALSO:

Gordon Campbell: On The New Lockdowns, Leadership And Lebanon

As Melbourne has shown, the webs of urban life overlap so extensively that community transmission can be very hard to trace, let alone control. Each of the family members in the South Auckland family at the centre of the current outbreak will have had ... More>>


ALSO:

National: Emma Mellow As Auckland Central Candidate

Tonight the National Party has selected Emma Mellow to stand in the Auckland Central electorate for the 2020 General Election. Emma Mellow replaces retiring MP Nikki Kaye who first won the seat from Labour in 2008. Emma leads a team of communications ... More>>

ALSO:

Travel: Update On New Zealand And The Cook Islands Bubble

The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Henry Puna have welcomed the completion of phase one in the establishment of a travel bubble between New Zealand and the Cook Island. More>>

Election 2020: Labour Launch

E ngā mana e ngā reo Ngāti whātua ngā mana whenua o Tāmaki Makaurau, e tika te kōrero Ehara taku toa he toa (taki tahi) he toa (taki tini) No rēira tātou e huihui mai nei, ka ‘Hoake tonu tātou’ Thank you for that welcome. And thank ... More>>

Gordon Campbell: On Political Twins, And On Labour Extending Its Wage Subsidy Scheme

A quick quiz for the weekend. Which political party currently represented in Parliament issued a press release yesterday that contained these stirring passages: “[We have] long supported a free trade and free movement area between Canada, Australia, New ... More>>

ALSO:

Democracy 2.0: NextElection Partners With Scoop For Exciting Democracy Tech

Joint Press Release: NextElection, Scoop.co.nz, ScoopCitizen NextElection , a technology platform empowering democracy and Government accountability, and Scoop Independent News have partnered to strengthen citizen participation in the 2020 New Zealand General ... More>>

ALSO:


Covid-19: Poll On Management Approval

New Zealanders’ overall trust in the Ministry of Health and Government to manage the COVID-19 pandemic is at 82%, down from 91% during April. Overall distrust that the Ministry and Government will manage it in ways which best protect themselves More>>

Election 2020: National Releases 2020 Party List

National’s 2020 Party List is a strong mix of experience coming up through our Caucus, and new and exciting talent joining our team from communities across New Zealand, Party President Peter Goodfellow says. “The National Party is incredibly ... More>>

Horizon Research Limited: How Judith Collins Stopped The Bleeding

Horizon Research includes questions on voting from time to time in its surveys – for both forthcoming referenda and general elections. More>>

Your Vote 2020: Bringing Election Coverage To Viewers Across TVNZ Channels And Platforms

As New Zealand gets ready to head to the ballot box this September, 1 NEWS is bringing voters comprehensive coverage and analysis of this year’s General Election. TVNZ’s coverage will draw on the depth of experience held across the 1 NEWS team, says Graeme ... More>>

Economy: 30% Believe Households Worse Off, 298,000 Expect To Lose Jobs

64% of New Zealanders feel the economic position of their households is the same or better than a year ago – and 30% think it is worse or much worse, while 298,000 think they will lose their jobs in the next 12 months. Households’ perceptions ... More>>

State Services Commission: Findings Of Investigation Into COVID-19 Active Cases Privacy Breach

Deputy State Services Commissioner Helene Quilter has today announced the findings of an investigation into a breach of privacy regarding sensitive personal information. The investigation looked into who or what caused the disclosure of the information, ... More>>

International Security: New Zealand Suspends Extradition Treaty With Hong Kong

The New Zealand Government has suspended its extradition treaty with Hong Kong and made a number of other changes in light of China’s decision to pass a national security law for Hong Kong, Foreign Affairs Minister Winston Peters says. More>>

ALSO:


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels