Parliament

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.


Ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Our Unreal Optimism About The Economic Impact Of Coronavirus

At this week’s Chinese New Year celebrations, PM Jacinda Ardern was resolutely upbeat that business with China would soon bounce back to normal – better than ever, even - once the coronavirus epidemic has been brought under control. To Ardern, the adversity has only accentuated just how close we are to Beijing Nothing wrong with being upbeat, if it can calm the nerves and turn business sentiment into a self-fulfilling prophecy. The problems begin when the optimism detaches itself from reality. What has been very odd so far about the coronavirus episode is that global share markets – normally spooked by mere sneezes or sniffles in the world’s major economies - have continued to be fairly positive, even as the epidemic has unfolded... More>>

First Published on Werewolf here


 

Gordon Campbell: On The Political Donations Scandals
Even paranoids have real enemies. While there has been something delusionary about the way New Zealand First has been living in denial about its donations scandal, one can sympathise with its indignation about Paula Bennett and Simon Bridges being among its chief accusers. More>>

ALSO:

UN Expert: NZ Housing Crisis Requires Bold Human Rights Response

This is a press statement from UN Special Rapporteur on the right to housing at the end of her 10-day visit to New Zealand. The Government of New Zealand has recognized that the country is facing a housing crisis, said Leilani Farha, UN Special Rapporteur ... More>>

ALSO:

2020 And Beyond: National’s Economic Plan

National Leader Simon Bridges has today outlined National’s economic plan heading into election 2020. “National understands the economy and how it impacts on New Zealanders day to day lives... More>>

ALSO:

Abortion Legislation Committee: Abortion Bill Report Presented To The House

The Abortion Legislation Committee has presented its report on the Abortion Legislation Bill to the House. A copy of the report is available here. The bill seeks to have abortion services provided like other health services... More>>

ALSO:


Auditor-General's Report : Water Management

The Auditor-General’s report Reflecting on our work about water management was presented to the House of Representatives today. Over the last two years we have been looking at how well public organisations are carrying out their water management ... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels