Drop Debt campaign says Nats student loans fiddle would make the Sheriff of Nottingham proud

Drop Debt Today media release FOR IMMEDIATE RELEASE Monday 23 March 2009

The Drop Debt Today campaign says the National Government's decision policy to give bonuses to those who could afford to pay back their student loans quicker was "stealing from the poor to give to the rich."

DDT Spokesperson Richard Mitchell says "the Sheriff of Nottingham would be pleased with such a slimy scam."

National education spokesperson Anne Tolley doesn't even get a "F-" for her announcement, according to Mr Mitchell.

He says Ms Tolley's comment that "shorter repayment times will mean young New Zealanders will be debt free earlier" was a stunning achievement in Orwellian political double-speak.

"This policy does not mean young New Zealanders as a group will be debt free earlier," says Mr Mitchell.

"What it means is that an ex-student earning a high income, or one with rich parents in a generous mood, will get an extra helping hand from the Government."

"Something must have got into the water supply at Parliament for such a bizarre comment to be made. With students crippled by $10 billion plus of debt, the Government should just be honest and say they don't give a stuff about the average student and are just interested in upper middle class welfare."

Ms Tolley's outlandish claim that National's policy means more money in students pockets each week and "more freedom to make major life decisions such as travel, starting a family or home ownership" was equally bogus.

"This heartwarming sentimental streak by the Minister would be slightly more convincing if these major life decisions for wealthy ex-students were not being subsidized by less wealthy ex-students," says Mr Mitchell.

"The majority of ex-students will be waiting even longer to accomplish even minor life decisions, as they struggle to travel to work, scratch around to pay for a date, or pay their rent for another week, let alone the big stuff Ms Tolley is talking up."

"Perhaps this is what they mean when they talk about the cashless society."

It is difficult enough for people earning the average wage to make the compulsory payments on their student loans, he says.

"Only those earning significant incomes will be able to take advantage of the voluntary repayment bonuses."

The scheme, introduced before the 2008 General Election by the then Labour Government, means borrowers making a voluntary repayment of $500 or more would get an extra 10 percent bonus from the government.

National have now extended the scheme to those with student loans living overseas, not limiting it to repayments made 10 years after a person graduates, and allowing the $500 repayment to be made in more than one transaction

Mr Mitchell says giftwrapping the noxious booby trap of youth debt with platitudes and political hogwash is not going to make any difference whatsoever to the problem.

“Education is a right to all New Zealanders and should not be made available to only those who can afford to participate. The immediately introduction of free tertiary education would solve all issues related to student debt and student loans."

Mr Mitchell says the goal of the Drop Debt Today campaign was to wipe all students loans and introduce free tertiary education.

“It is time the Government acted in the best interests of the entire country rather than acting in the interests of a wealthy minority,” says Mr Mitchell.

ENDS

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