Alliance Party media release FOR IMMEDIATE RELEASE Wednesday 28 March 2007

Alliance says wipe the $9 billion student debt travesty

The Alliance Party says the nine billion dollar student debt is a weight around the necks of a generation of young New Zealanders.

Alliance Party President Victor Billot says news that the estimated size of student debt will reach nine billion dollars today, Wednesday 28 March, is likely to be swept under the carpet by the political establishment.

"The first question to ask is – what did Helen Clark and John Key pay for their tertiary education? The second question is – why did National and Labour give tax cuts to the rich and a loan shark scheme to students? This is a situation where the poor and the young are paying for the middle aged and wealthy."

Mr Billot says that new students, many of whom are teenagers, often have little idea how difficult it is to pay back their student loan.

"There is an element of what can I do about it, everyone else has a student loan. A few years down the track people are thinking about buying houses and starting families – then realizing that the student loan is an extra burden that is stopping them getting ahead."

Mr Billot says the Alliance has a simple plan.

He says the Alliance would wipe all student loans, abolish fees and establish free education.

"This could be done by getting rid of the Superfund, and investing in our young people rather than nuclear weapons and anti-worker corporations."

"This is the only way to deal with the problem for once and for all. It is the legacy that the student loan generation could leave their children – rather than the legacy of debt left to us by the Labour and National politicians who enjoyed free education."

Mr Billot says we need to remove any barriers to education to build a skilled, socially responsible people.

ENDS

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