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Labour Adopts NZ First Tertiary Education Ideas

New Zealand First has accused Labour of borrowing part of its Tertiary Education policy.

The Education spokesperson and former Associate Minister of Education, Brian Donnelly, today said that Labour had followed New Zealand First’s policy of focusing on student loans and the essential reduction of interest rates.

“Imitation is the most sincere form of flattery, but Labour has foolishly said it will lend money without pegging loans to the CPI. This means that there is no incentive for repayment, or even for people to work following their graduation.

“There is also a hidden cost to taxpayers in that the longer the delay in repaying the loan, the more it will reduce in real terms, through fiscal drag.

“Labour has been tripped up by the “frilly, silly” bits of its tertiary policy in trying to outdo New Zealand First’s sensible loan policies,” said Brian Donnelly.

New Zealand First has already told students that it will peg student loans to the CPI during their full time study and then hold the interest rate to the CPI plus two per cent after that.

It is also increasing the Government contribution to course fees, offering scholarships, a review of the threshold wage for repayment, and the opportunity to work off loans under certain circumstances.

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