Radical Loan Plan Eases Debt Burden for Thousands

Tuesday, 26 July 2005, 1:39 pm
Press Release: New Zealand Council of Trade Unions

Radical Student Loan Plan Eases Debt Burden for Thousands of Workers

Labour’s policy of interest-free student loans promised far more to those paying off loans than National’s miserly plan for tax rebates on interest paid, Council of Trade Unions vice-president Helen Kelly said today.

Labour’s tertiary policy says no interest will be charged on student loans while those with loans stay in the country.

“Anyone who thinks they would be better off with a tax rebate is dreaming,” Helen Kelly said.

“National is offering a small tax break that is inequitable because it benefits those who can afford to pay off the most,” she said. “Labour’s policy is a radical move that will ease a huge debt burden on many thousands of New Zealanders.”

The policy would help to keep much-needed skilled workers in the country and be fairer on women.

“Women take twice as long as men to repay their student loans - because they are often paid less than men - and therefore pay thousands of dollars more in interest.

“Today’s announcement is a light at the end of a long tunnel for a huge number of workers who are struggling to pay their student loan, save for their retirement, buy their own home and provide for their families.”

ENDS

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New Zealand Council of Trade Unions

Te Kauae Kaimahi

The New Zealand Council of Trade Unions Te Kauae Kaimahi brings together over 350,000 New Zealand union members in 40 affiliated unions. We are the united voice for working people and their families in New Zealand.

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