Wednesday, 11 August 2004

Democrats Want Student Loan Scheme Scrapped

The NZ Democratic Party's Annual Conference held in Christchurch this month has called on the Government to accept the student loan scheme is an unsustainable failure, which needs to be scrapped. The only Party to consistently oppose the Student Loan policy since its inception has been the Democratic Party.

"The capital requirements of all our tertiary institutions can and should be provided debt free, alongside the introduction of an adequate cost of living allowance" said leader Stephnie de Ruyter

"Far from being the access route to a better standard of tertiary education, student debt has become a shortcut to despair and dislocation for a growing number of New Zealanders. The original intent of expanding opportunities for New Zealanders has predictably resulted in a debt grip which in real terms is debilitating the skill base our economy desperately needs".

"Unless the scheme is dumped, student debt will exceed $20 billion within 15 years. Even if the interest remains at current rates, which current trends indicate as most unlikely, the interest accruing will see students repaying in excess of $60billion.

Imposing such an impossible burden on the income earning capacity of future generations is economically unsustainable and morally unjustifiable. The student loan scheme has to go" concluded the Democrat Leader.

ENDS

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