Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Student Loan Scheme Needs To Go

9/11/2005

Student Loan Scheme Needs To Go

The current debate over the Student Loan Scheme has finally entered the realms of Harry Potter fantasy with the references by both Nationals' John Key and Labours' Dr. Michael Cullen to the ever growing debt being a government asset.

When the loan policy was introduced by National in 1992, on the back of Labour's 1990 $1200 student fee, the predictions that the current outcome would be inevitable were rubbished by politicians from both sides. Now both Labour and National reaffirm they are as one on economic mythology by referring to the Student Debt as a government asset.

How in the name of anything but creative accounting can a liability on students and taxpayers, as this loan scheme is, be magically transformed into an asset?

Where is the asset value in a scheme resulting in instances of lifelong individual debt and graduates buggering off overseas?

How can funding sourced from foreign investors, which contributes about $500 million a year to our current account deficit be an Asset?

How can a scheme where half a billion dollars in interest payments is transferred from the borrower to the taxpayer be an asset to the economy?

The only winner in the whole long running debacle is the provider of the capital for the loans. Every other participant is in varying degrees a loser, the students and the taxpayers in particular and the New Zealand economy in general.

Education is a critical element in the essential infrastructure of our society and should be funded as such rather than used as a periodic punch bag by peripatetic politicians. Visit www.electronz.cjb.net for more education on student debt.

ENDS

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The Flaws In Anti-gang Laws


Google “Christopher Luxon“ and “mojo” and you get nearly 60,000 matching responses. Over the past 18 months – here and here and again, here – Luxon has claimed that New Zealanders have either lost their mojo and/or are in the process of re-finding it. With mojo in hand, New Zealanders will once more become a nation of over-achievers, blessed with the feisty Kiwi can-do spirit of yore.

But here’s the thing. According to Luxon, we’re naturally bold, inventive and self-reliant. Yet according to him, we’re also “wet, whiny and inward-looking”...
More


 
 

Government: GPS 2024: Over $20 Billion To Get Transport Back On Track
Transport Minister Simeon Brown has released the draft Government Policy Statement (GPS) on Land Transport, outlining the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely... More

ALSO:


ACT: New Zealand Dodges Dopey Experiment In Prohibition

“Labour’s attempted crackdown on smokers would have delivered criminal groups a near-monopoly over the cigarette trade,” says ACT Health spokesman Todd Stephenson... More

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.