Victoria University of Wellington Students’ Association

John Banks’ out of touch and out of date

Victoria University of Wellington Students’ Association (VUWSA) has rejected ACT Party MP John Banks’ recent comments advocating for a return to interest-accruing student loans.

VUWSA’s Acting Welfare Vice-President Rory McCourt said that many students were already under significant financial strain.

“John Banks is out of touch and out of date. The reality is students are already finding the financial burden of tertiary education difficult to manage. The recent Graduate Longitudinal Study New Zealand (GLSNZ) found 15% of all tertiary students are in absolute financial distress, with a much higher proportion living in poverty,” said Mr McCourt.

Mr McCourt said that John Banks’ generation paid no fees and was almost guaranteed employment post-graduation.

“Today’s students are being locked out of universities and polytechnics by high fees, increasing essential living costs, and withering state support.

“The reintroduction of interest on student loans would result in fewer students accessing tertiary study, especially those from low-income backgrounds where alternative sources of funding are not available.

“For many students their loan has to cover rent, food, power, fees, text books and transportation costs; students are not only borrowing to study but also to live. Which begs the questions, why are students treated so differently from those receiving a benefit or superannuation?” said Mr McCourt.

Mr McCourt said that a choice needs to be made; are we going to fund our brightest talents and retain them in New Zealand or see these people join the dole queues? Interest-free loans are an investment in New Zealand’s future.
ENDS

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