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


Students will borrow a billion, make more

Students will borrow a billion, make more

National Party Education spokesman Bill English says Labour’s interest free student loans will see students borrow billions they don’t need and put it into interest-earning bank accounts.

“This policy will see student debt skyrocket. Students can borrow up to about $10,000 per year, on average they currently only borrow about $6,300 of that. But now that they won’t be charged interest, they’d be mad not to borrow the extra $3,700 to either spend or put into an interest-earning account.

“Labour will allow more students to borrow more and most of them will.

“Currently just 55% of students eligible for a loan take one out. But now the more than 100,000 students who are eligible for a loan but haven't yet taken one out have a strong incentive to take out a full student loan and put it in the bank to earn a nice little nest egg on the taxpayer.

“Even if only half of those students take up the opportunity, the total student debt burden will grow by several billion in the next four or five years.

“I want to see students get ahead but not at the expense of others. Why should a taxi driver or a carpenter pay all of the interest on a loan taken out by someone who will potentially have much greater earning power than they do?

“Labour’s arguments about tougher rules for borrowers don’t wash. There is nothing to stop anyone switching from parental support or paying their own way, to charging it all back to the taxpayer.

“Labour has not thought this policy through. Their desperation in the face of bad polls has seen them grossly underestimate the cost of this interest free policy,” says Mr English.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Demise Of The Tokyo Olympics

As the Covid vaccines roll out around the world, the Tokyo Olympics are looming as a major test of when (and whether) something akin to global normality can return – to international travel, to global tourism, to professional sport and to mass gatherings of human beings. Currently though, it looks like a forlorn hope that Japan will be able to host the Olympics in late July. Herd immunity on any significant scale seems possible only by December 2021, at the earliest... More>>


New Zealand Government: Cook Islanders To Resume Travel To New Zealand

The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such ... More>>


A New Year: No politicians at Rātana in 2021

Annual celebrations at Rātana pā will be different this year, amid a decision to hold an internal hui for church adherents only… More>>


Government: Pre-Departure Testing Extended To All Passengers To New Zealand

To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. More>>


Covid: Border Exception for 1000 International Students

The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began....More>>





InfoPages News Channels