Student Debt Burden Set To Skyrocket

Media Release

Hon Maurice Williamson
Opposition Spokesperson on Tertiary Education
Monday 20 December 1999

STUDENT DEBT BURDEN SET TO SKYROCKET

The Opposition today issued a warning to tertiary students not to be sucked into taking out student loans now that interest won’t be charged while they are studying.

“The Labour-Alliance Government has given students a blank cheque to spend up - but on borrowed money,” Opposition Tertiary Education spokesperson, Maurice Williamson said today.

“The new Government has effectively opened the floodgates for a lot more borrowing than under the previous student loan scheme.

“The Prime Minister has said she finds it acceptable that students are likely to borrow more once the interest changes come in.

“At present about fifty per cent of tertiary students don’t take out student loans. The changes are likely to backfire, with student debt levels skyrocketing as young people realise the money is there for the taking.

“The National Government’s improvements to the student loan scheme were more targeted to limit the amount young people could borrow, and reduce the size of the debt burden.”

ENDS

For further information please contact:

Maurice Williamson 09 576 6570
04 4719 725

© Scoop Media